Tax credits should be watched closely because they allow the person who declares them to receive a check from the tax authorities. They are often confused with tax cuts when there are several significant differences. We take stock of everything there is to know about tax cuts and credits. You will be able to declare them correctly and obtain a refund if you are entitled to it.

How does the tax credit work?

The tax credit is a device that allows the taxpayer to reduce his income tax. It can be deduced in two different ways. Either you have to pay tax or the tax credit will reduce it. Either you are non-taxable or the tax authorities will then reimburse you for the tax credit. For that visiting is important.

What is the difference between the tax credit and the tax reduction?

In the same way as the tax credit, the tax reduction will make it possible to reduce the amount of taxation. On the other hand, the tax reduction is not returned if the person is non-taxable. A tax credit is always returned while a tax reduction may be lost.


The reduction makes it possible to reduce the tax to 0 €. The 500 € of taxes are canceled. There are 1,500 – 500 or 1,000 € tax reduction left. Unfortunately, Mr is tax-free and therefore has no possibility of recovering the remainder. Unlike the tax credit, the reduction is not refunded for non-taxable persons.

Depending on the tax cuts, the balance not used for non-taxable persons is sometimes lost and other times carried over to subsequent years.

How to declare a tax credit?

To benefit from a tax credit, specific boxes must be filled in when filing the tax return in May. Most tax credits are shown on Form 2042RICI. It is a form annexed to the classic tax return. For the online tax return, you must check the “tax credit” box in step 3 to access the boxes.

The tax authorities will never pre-fill tax credits for you. It is up to you to know them and to know that you are entitled to them. If you do nothing, you will miss it.

How to declare a tax reduction?

The tax reduction is declared in the same way. To have the tax benefit, you must complete the box in the RICI form. You can print it out on paper or fill it out online. It is therefore essential to know the tax reductions and credits in order to be able to declare them and take advantage of them.

What are the tax credits to know?

There are dozens of tax loopholes but we can list some essential tax credits. These tax credits concern a large part of French taxpayers and it is important to know them. For the most part, we wrote a specific article on the subject explaining the boxes to be filled, the ceilings, the amount of the reimbursement etc. Just click on the corresponding tax credit below to know the conditions to be respected.

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