Important: the following ONLY applies to taxpayers falling in tax bracket 1A for receiving a tax bonus for dependent children in one of the following forms: child benefits from the CAE (Caisse pour l’Avenir des Enfants), financial aid for higher education from the CEDIES (Centre de Documentation et d’Information sur l’Enseignement Supérieur) or financial assistance for volunteers with the SNJ (Service National de la Jeunesse)
We would like to give you additional information to supplement circular 154 ter/1 L.I.R. of 7 April 2017 pertaining to the tax credit for single parents (crédit d’impôt monoparental – CIM).
This tax break is granted upon the taxpayer’s request under certain conditions:
- The taxpayer must fall into tax bracket 1A (with at least one dependent child)./li>
- The parents of the child must not share a household.
The amount credited was increased by the Law of 23 December 2016 implementing the 2017 tax reform on the following basis:
The CIM tax credit is reduced by 50% of the sum of all other allowances (excluding orphan and family benefits) received for the child in excess of EUR 2,208.00 per year or EUR 184 per month.
Example:
- Period: 12 months
- Total annual allowances: €3,000.00
- ATI: €50,000.00
- Baseline CIM = 1,875 − 50,000 * (750/70,000) = €1,339.29
- Reduction: (3,000 − 2,208) * 50% = €396.00
- Yearly CIM granted = 1,339.29 − 396.00 = €943.29
Employees or pensioners for whom income tax is withheld on the basis of a tax card may submit a prior request to the RTS tax office to have the CIM applied directly to the tax card. If no such request is submitted, the CIM may still be requested after the close of the fiscal year as part of an annual breakdown or assessment for tax purposes (filing of the tax declaration).
Please contact us if you require further information on this matter.