The advantage allows you to use a tax credit of up to 6,000 euros.
There is a significant tax break, but many qualified people do not take advantage of it. This advantage allows you to use a tax credit of up to 6,000 euros. Let us remind you that a tax credit is a sum of money that the state owes to the taxpayer. It is clear that the tax credit can reduce the amount that the taxpayer has to pay. Unlike a tax cut, which only reduces the amount to be paid, a tax credit can also lead to a “negative tax”, which means that the tax authorities can pay money to the taxpayer if the amount of the tax credit is greater than the amount of tax owed.
A tax return, more appropriately called an “income statement,” is not only used to report one’s resources, as its name might suggest. It is also used to report certain taxpayer expenses to the tax authorities. Some of these costs are eligible for tax relief. In the income tax return, the special section 7DB is intended for reporting these expenses. Thanks to this box, the tax credit can reach up to 6,000 euros. About 4.5 million French people are entitled to this tax relief each year, with an average tax reduction of 1,200 euros.
The expenses that give rise to this tax relief are those related to personal services. This can include hiring a housekeeper, looking after children at home, helping the elderly or disabled, gardening and yard work, IT help or even animal walking. If the taxpayer used one of these services during 2023, he can enter the corresponding expenditure in field 7DB of his tax return.
The tax credit associated with field 7DB entitles you to a refund of 50% of the costs incurred. For the declaration without children, the maximum amount taken into account is 12,000 euros, which offers a tax reduction of 6,000 euros. This upper limit is increased by 1,500 euros per dependent child, bringing the maximum amount to 13,500 euros for a declaration with one child, 15,000 euros for two children, and so on.
To access field 7DB, the taxpayer must go to his personal area on the website impot.gouv.fr, open his declaration and go to the second page entitled “Your expenses”. The row “Personal service: work at home” corresponds to column 7DB. Clicking on the pencil icon opens a window in which you can describe in detail the costs incurred and the assistance received. Once this information is confirmed, the calculation is carried out automatically, and the result is reported on the last page of the declaration, before the final check.