15 incomes and benefits that escape his tax return
We are used to saying that everything is taxed in France. However, some income and benefits are legally exempt from tax. And there are more of them since the appearance of the social and health crises that shook our country, in an attempt to improve the purchasing power of the French.
Are you interested in knowing about these gifts that the FISC can offer you? So follow the guide!
Untaxed income and benefits following the crisis
1 – The Macron bonus
Launched in 2018 following the yellow vests crisis, the Macron bonus is renewed again this year. It can potentially concern all employees and consists of the payment of an exceptional bonus of up to 1,000 euros, or even 2,000 euros in the presence of a profit-sharing agreement in the company.
It is based on the goodwill of the employer, but the latter is strongly encouraged to pay it by the government, especially since it is completely tax-exempt, for both the boss and the employee. Consequently, if you are lucky enough to be one of the 6 million French people who receive it, you have no tax to pay.
2 – The Covid premium
The Covid bonus concerns civil servants who mobilized during the health crisis, to respond to the state of emergency and the work overload. It is between 500 and 1,500 euros maximum.
Like the Macron bonus, it is fully tax exempt. It is aimed at state public officials, local public officials, social and medico-social agents.
3 – The solidarity fund
Paid to non-employees by the various social funds on which they depend, it has enabled many of them to cope with the health crisis linked to Covid, despite a drop in turnover or an administrative closure in many sectors. economy.
The solidarity fund is completely exempt from income tax, even if it has been paid for several months in a row and represents substantial sums in total, which can amount to tens of thousands of euros over a year. ‘activity.
4 – The inflation premium
Still pending following opposition from the Senate, it is nonetheless true that the inflation bonus should be paid between November 2021 and January 2022 to all French people receiving less than 2,000 euros net per month.
This bonus of a lump sum of 100 euros thus concerns nearly 38 million French people, without discrimination related to their activity. It aims to respond to inflation, which is particularly felt in the price of fuel and consumer goods at the end of 2021.
5 – Teleworking costs
With the health crisis, many companies and many employees have resorted to teleworking to continue to carry out their missions during successive confinements. However, to carry them out, costs must be advanced, in particular related to the acquisition of a computer, a keyboard, a headset, a computer, but also to the increase in household expenses such as electricity, heating, coffee break, etc.
To compensate for this loss of purchasing power, employers have paid lump-sum allowances to their employees for equipment, heating, food, etc. This exceptional aid is exempt from income tax up to a maximum of 550 euros per year, which corresponds to 2.50 euros per day worked. On a case-by-case basis, this ceiling may be increased if accompanied by proof of the expenses actually incurred.
Good to know: if you have not received a flat-rate allowance from the employer, you can deduct these additional expenses from your income when you are taxed, provided you opt for the actual costs and not for the automatic 10% flat-rate allowance. To your calculators!
Income and benefits permanently exempt from tax
6 – Social assistance
We often forget this, and yet it is a major advantage not to be taxed on the social assistance that you may receive. Thus, this tax boost concerns many French people, whether they are job seekers, employees, heads of families or retirees.
The following aids are thus exempted from declaration to the tax authorities
- Activity bonus,
- Family benefits,
- Housing allowances,
- The active solidarity income,
- Christmas bonus,
- The back-to-school allowance,
- Disability compensation benefits.
There is no limit on the amount, whether you have 100 euros of activity bonus only, or 1,500 euros paid by CAF, you do not have to declare these sums to taxes.
7 – Benefits in kind
There are many benefits in kind available to employees and some company directors. Be aware that, for the most part, you do not declare the amounts collected, unless they exceed certain ceilings.
Let’s do all of the benefits in kind that escape your tax return:
- Restaurant vouchers, up to a limit of 5.55 euros per ticket,
- Holiday vouchers, up to a limit of 1,539.42 euros per year,
- Financial aid for the payment of personal assistance services, up to a limit of 1,830 euros per year,
- Aid for transport costs for the home-to-work journey, up to a limit of 50% of the costs,
- Travel aid and sustainable mobility package for the home-to-work journey, up to a limit of 500 euros, including a maximum of 200 euros for fuel costs,
- Gift vouchers and gifts from the employer, up to a limit of 171 euros per calendar year, per event and per beneficiary,
- Free delivery of computer hardware and software, up to a limit of 2,000 euros per year.
As you can see, the benefits in kind put end to end can make it possible to escape tax for several hundred or even several thousand euros.
8 – Overtime
The overtime you work is exempt from tax up to a limit of 5,000 euros per year. This rule has been revised upwards for employees who worked during the health emergency period, between March 16, 2020 and July 10, 2020, with a total ceiling of 7,500 euros.
This amount is normally pre-filled in your tax return. If this is not the case, you will have to declare them yourself on the line “exempt overtime), but you will not be taxed for this.
9 – Severance pay
The legal severance pay, provided for by law, your collective agreement or a branch agreement is totally exempt from tax. Only amounts above the legal amount are taxable.
Similarly, all compensation received as part of a job protection plan is tax-exempt, whether it is a dismissal or a voluntary departure.
10 – Daily allowances
The daily allowances, paid by the Social Security or the Mutualité sociale agricole are not all taxable. Thus, sickness and maternity benefits are fully taxable. However, if it is a long-term illness, they are completely exempt.
On the other hand, daily allowances received in the event of occupational disease or accident at work, as well as incapacity allowances, are exempt up to 50% of their amount.
11 – The sale of second-hand goods
Do you resell second-hand goods belonging to you in the context of a second-hand sale or by putting them up for sale on sites such as Vinted, Le Bon Coin, eBay or even Facebook Marketplace?
You do not have to declare the amount of these sales, unless their sale value exceeds 5,000 euros. You also do not have to declare sales of cars, furniture or household appliances over 5,000 euros.
12 – Carpooling
To reduce your costs, you regularly carpool by taking passengers with you, to go to work or to go to your vacation spot, for example.
The money these passengers give you in exchange for the service is not reportable, if the trip is made on your behalf, you pay part of it, and the price charged does not exceed fuel and TOLL.
13 – Internship allowances
If you complete an internship as part of your studies, you can receive a bonus from the employer for your collaboration. Note that internship allowances are exempt from tax up to a limit of 18,473 euros per year.
Thus, on the salary line of your tax return should only include amounts exceeding this ceiling.
14 – Apprentice wages
Apprentice salaries are exempt up to the same limit as internship income, i.e. 18,473 euros per year. To benefit from this exemption, you must be under 26 when you receive them. They are still to be declared during the tax declaration, the FISC then applying the deductions in force.
15 – Student jobs
Whether or not you are attached to the tax household of your parents, you may be entitled to a tax exemption for your student jobs. This applies if you are actually a student and are under 26 years old.
The exemption on student salaries is capped at 3 monthly minimum wage, or 4,618 euros per year. You only need to report amounts above this amount.