Tax credit advance paid on January 15

On 15 January 2021, a 60% deposit will be automatically paid by bank transfer to the 8.5 million tax households that will have benefited from tax credits and reductions in 2020.

The amount of this advance will be calculated on the basis of the tax situation of the previous year (tax reductions/credits paid in 2020 for expenses incurred in 2019). The payment corresponds to reductions and tax credits considered as recurrent by the tax authorities: Nursery assistant, personal service, donation to works... On the other hand, certain reductions such as the energy transition tax credit (CITE) or the tax reduction linked to the subscription to the capital of an SME do not give rise to the payment of an advance. They will be reimbursed in full in the summer of 2021.

Next spring, based on the income tax return and the expenses actually incurred in 2020, the final amount of the reductions and tax credits to which the taxpayer is entitled will be calculated and will be regularised in the summer of 2021, taking into account the amount of the advance paid in January 2021 (payment of the remaining 40%).

It should be noted that taxpayers eligible for these tax benefits for the first time for expenses incurred in 2020 and who have not had this type of expenditure in 2019, will receive the full amount of their tax reductions/credits in the summer of 2021. They will therefore not receive an advance in January 2021.