The entry into force of the withholding tax in January 2019 did not put an end to the traditional annual declaration. More important than ever, this approach allows you to regularize your income tax according to events that may have impacted your tax situation during the past year.
In practice, the declaration made by taxpayers in spring 2020 makes it possible to calculate the final amount of their tax due for 2019 income. However, it is between the months of July and September that the resetting of your counter has location.
Balance or refund?
Three situations can arise. If there is no change in your personal or professional situation, the amount of your tax corresponds a priori to the amounts withdrawn each month. You are therefore in equilibrium.
On the other hand, if you have suffered a loss of income that you were slow to declare, or if you benefit from reductions or tax credits that you had not previously received, the monthly amount withdrawn between the 2019 return and the 2020 statement will ultimately prove to be too high. The public treasury must therefore reimburse you. In principle, the taxpayers concerned received a bank transfer between the end of July and the beginning of August.
Finally, for the unlucky ones, back to school comes with an additional bill. If you have not thought about updating your withholding tax rate following an increase in income or if you took advantage of too large an advance in tax credits in January 2020, you will indeed have to pay the balance of your tax. After having informed you of the sum for which you are liable, the Public Treasury will proceed to its withdrawal from September 25, 2020. Please note: the amount is taken in one go up to 300 euros, and in four monthly installments beyond this cap.
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