The reform of the withholding tax has made the tax authorities more responsive. Since then, the majority of citizens have their taxes deducted each month from their pay, unemployment benefits or retirement pension.
However, these monthly payments are established on the basis of the annual declaration made each spring. Your situation may have changed in the meantime.
Online updating
A divorce, a new activity, a partial unemployment or retirement may impact your level of taxation. Whether you are fortunate enough to have landed a new, better-paid job, or are experiencing serious financial hardship, as is the case with many taxpayers who anticipate a drop in income due to the Covid-19 health crisis, the tax administration allows you to adapt your deduction at source accordingly.
To avoid paying too much or too little for months, any change in personal or professional situation must therefore be reported as quickly as possible via the online service "Manage my direct debit", available in your personal space on the tax site. gouv.fr. In case of variation in your resources, you will then have to go to "Update following an increase or a decrease in your income". In this way, your debit rate and your monthly or quarterly installments will be immediately recalculated according to your new financial situation.
More than 10% drop in revenue required
If the modification is done in a few clicks on the Internet, it deserves reflection since it is a question of evaluating yourself the level of income that you estimate to receive in the current year. However, in the event of a bad estimate, you risk being recalibrated during the next annual declaration, or even penalties if the tax administration considers that you are in bad faith. In addition, the public treasury does not allow taxpayers to reduce their monthly payments so easily.
While the upward variation in your income can be declared without any limit, the downward discount is only allowed if you anticipate a fall of more than 10% compared to the resources of the previous year. You must therefore compare the two before making the change. Once this has been done, a new sampling rate will be calculated and sent to the collecting organizations. The modification of your deadlines will apply within a maximum period of two months.
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