While the tax declaration campaign is underway, the French are immersed in their documents in order to avoid errors and oversights with the tax administration. As for retirees, some good news could indeed calm minds this year with the prospect of a reduction granted for those over 65. In this scenario, it will be possible to see the amount of your taxes be reduced, according to tax data. Here are more details about it.
It’s hard not to be worried when you have to file your tax return. It is, therefore, always a greatly feared moment in the year, which is accompanied by reflection and hesitation. Retirees should this time take a breather from the tax administration. It turns out, in fact, that retirees over 65 will be able to benefit from a tax reduction, which will allow them to reduce their taxes. This was put in place to relieve them by giving them a respite.
Criteria are nevertheless required to be able to obtain this reduction. To do this, you must be over 65 years old during the year, whether you are a taxpayer or a couple of taxpayers subject to joint taxation. It is also necessary to have an overall net income of less than 27,670 euros. The amount of the reduction depends on the overall net taxable income of the taxpayer or tax household. It therefore corresponds to the sum of income received during the tax year in terms of retirement, real estate income, but also life annuity.
For those over 65 and with an overall net income of less than 17,200 euros, the amount of the tax reduction amounts to 2,746 euros. For a total income of between 17,200 euros and 27,670 euros, the amount is, this time, 1,373 euros. Beyond 27,670 euros of total net income, no tax reduction can be applied.
Retirees also have the ability to benefit from a reduction if their adult child is attached to their tax household. Through this connection, an additional reduction may take place on the overall net income. Thanks to the revaluation of 4.8% in 2024, this will allow retirees with modest living conditions to pay less taxes this time.
No action is required to benefit from this tax reduction. This amount is automatically deducted by the tax administration from the overall net income. To implement it, the tax authorities will use the information provided by the taxpayer, in particular their date of birth. A way to avoid unnecessary procedures.
While retirees are severely affected after having finished their professional activity and are currently experiencing a significant drop in their purchasing power, this news acts as a light in a complicated situation. Thanks to a reduction in tax pressure, their budget will be able to adapt more freely to the inflation which is raging at the moment.