Selecting a language will automatically trigger the translation of the page content.

Income Tax - How are deferred income taxed?

Verified 08 avril 2021 - Legal and Administrative Information Directorate (Prime Minister)

Deferred income received in 2020

Deferred income is income that you earned in 2020, but that is the amount you earned in or before 2019 (in one or more years). The offset should not be your fault. For example, a salary or progress reminder.

These revenues were subject to withholding tax like other revenues.

On your 2021 return of 2020 income, you do not have to report it with your business income, but as exceptional income, regardless of the amount.

You must enter the total of these revenues by one of the following means:

  • In the framework provided on page 3 of Declaration No 2042 C (line 0XX)
  • On free paper attached to declaration 2042

  Please note : you can view special or deferred income notice .

Online Declaration

Internet reporting is mandatory if your main residence is equipped with internet access and you are able to make your declaration online.

2021 Online 2020 Income Statement

Ministry of Finance

Before validating your pre-completed return online, you must verify the information provided and, if necessary, correct and complete it. Keep supporting documents for 3 years if requested by the administration.

Paper Declaration

In 2021, you can report your income on paper if you are in one of the following situations:

  • Your main residence is not equipped with internet access
  • It is equipped with internet access, but you are not able to make your declaration online

You will use the pre-completed paper return received between April and June 2021. Depending on your situation, this is the return No 2042 or 2042 C. Declaration #2042 RICI groups major tax credits and reductions.

If you do not receive a print (1st declarationchange of address, change in family situation), you can report online or download the necessary declarations from early May on service-public.fr or www.impots.gouv.fr.

Certain income is to be reported on a separate return. You can also download them online. The main annexed declarations are:

Before signing your return, you must verify the information provided and, if necessary, correct and complete it.

You do not have to attach supporting documents to your paper return unless they are documents prepared by you (such as a detailed list of your actual expenses). However, keep the documents for 3 years if requested by the administration.

Deferred income received in 2021

Deferred income is income that you receive in 2021 but that corresponds to the remuneration for activities you performed in or before 2020 (over one or more years). The offset should not be your fault. For example, a salary or progress reminder.

These revenues are subject to the withholding tax as are other revenues.

However, you do not have to report them on the 2021 2020 income tax return.

You will have to report them on the 2022 income tax return with the Notice No. 2041-GH on exceptional or deferred income , irrespective of their amount.