HomeBlogHow to get your income tax back in 2021

    How to get your income tax back in 2021

    date

    If the taxpayer used tax benefits, when calculating income tax, a credit balance will appear on his tax account in July. The same thing happens if the amount of income tax paid in 2020 exceeds the actual amount of income tax: in the case of a negative balance, in other words, an overpayment, the excess tax paid is subject to refund during the summer months.

    In 2021, tax authorities moved to paying 60% tax overpayments at the beginning of the year, subject to compensation for overpaid taxes in 2020 on 2019 income.

    What happens if the State Treasury must reimburse overpaid taxes and issue a refund of overpaid taxes? When does the government pay the refund?

    Payment schedule in 2021

    • January 15, 2021: payment of advance payment (60%);
    • July 20, 2021: 1st balance payment date;
    • July 23, 2021: 2nd balance payment date;
    • August 6, 2021: 3rd balance payment date;
    • from July 22 to September 6, 2021: payment by check letter.

    Summer dates: chart calculated by ToutSurMesFinances based on 2020 dates.

    Tax benefits and overpayments for 2020: terms and dates for payment of refunds in 2021

    Reimbursement in case of tax overpayments

    Tax benefits for childcare costs, renovation work, interest on a loan for the purchase of a primary home, contributions to a supplementary pension, health insurance and Prévoyance for TNS, etc.

    There are many potential opportunities for a tax refund to arise: it occurs when the amount of tax relief reduces the taxable amount of gross income, or when the taxpayer becomes entitled to a refund of overpaid tax.

    Examples of calculating income tax refunds

    Example 1

    For example, let's take our friend Misha. He is an architect with Profession Libéral status. This gives him the right to reduce the tax base by the amount of contributions pension contract, health insurance and Prévoyance insurance within loi Madelin.

    • The amount of health insurance contributions amounted to 1,370 € per year.
    • The amount of contributions for the additional pension amounted to 4,567 € per year.

    As a result, Misha will be able to reduce his tax base by €5,937 next year. If we consider that his TMI (marginal tax rate) is 30%, then he will receive a refund in the amount of:

    5,937 x 30 % = 1,781€

    Example 2

    Consider, for another example, a taxable couple with two small dependent children who are cared for at home by a nanny at a cost of €600 per month (i.e. €7,200 per year):

    • income tax = 1600 euros;
    • tax benefit for care services = 3600 euros (50% from 7200 euros);
    • refund amount = 2 thousand euros.

    In this case, the difference is returned to the taxpayer. No action needs to be taken: the refund is processed automatically by the State Treasury.

    FCPR AXA Avenir Entrepreneurs

    Refund payment date in 2021: January and July

    Starting in 2019, there are two tax credit refund dates:

    • first return in January 2021;
    • and the remainder in the summer of 2021.

    The National Treasury can pay the refund in two ways, depending on whether it has the taxpayer's bank details.

    • Payment to a bank account.
    • Bank check by mail.

    The payment date depends on the payment method.

    The payment will be sent to your bank account:

    • or July 20;
    • or July 23;
    • or August 6.

    More details read the article

    Sign up for a consultation, my specialty is tax optimization through contributions to future pensions and insurance. I will help you choose the tax disposition that suits you, calculate the amount of the benefit, select a suitable solution and answer your questions.

    Sign up for a consultation

    Useful content? Share with your friends on social networks!
    Olga Rouzade
    Olga Rouzade
    Advisor on organizing personal and family finances and starting a business. I help you create a program of solutions to achieve your financial goals, taking into account tax optimization. I advise on setting up a business in France.

    Sign up for
    consultation

    Sign up for a consultation and get professional help with your project...

    Related articles:

    How to Open a Beauty Salon in France - Real Difficulties and a Successful Solution

    Opening a beauty salon in France: how to overcome difficulties and successfully launch a business. Learn about a real case from Cannes and get useful tips!

    How we helped a travel company open a business in France  

    Find out how we helped a travel company register a business in France, solving problems with documents and banks.

    CODEV — Joint development for your growth! Hurry to sign up with a discount

    Find out how the CODEV method helps you solve business problems, increase profits and develop strategic thinking with expert Elena Lardi!

    Live with Elena Lardi: How the CODEV Method Helps Aspiring Entrepreneurs Grow and Develop

    If you are a budding entrepreneur, the CODEV method can be your reliable tool for growth. Join Elena Lardi live, where we will tell you how CODEV strategic sessions help businesses move forward, strengthen their positions and develop.

    How to Build a Tourism Business That Works: Interview with Elena Lardi

    Elena Lardi on how to build a business in tourism, cope with difficulties and find balance. At the end of the article is a link to sign up for the CODEV group via WhatsApp.

    Our services

    Financial protection in case of temporary and permanent disability and loss of a breadwinner

    Avizen Pro is an insurance product specifically designed for self-employed workers, providing reliable financial protection against the consequences of death, disability and/or temporary disability.

    Accident insurance

    Discover the need for accident insurance.

    How to protect your loved ones from loss of autonomy

    The main purpose of the Entour'Age contract is to offer the insured person (and his loved ones) specific solutions when he begins to need constant care. Read more in the article.

    Funeral insurance ESSEN'CIEL

    ESSEN'CIEL lasts a lifetime and ends with the death of the insured, but also in the event of termination or complete abandonment of the contract. Find out the details.
    More articles on the topic:

    Widow's benefit and survivor's pension - your support in difficult times

    Losing a loved one is a difficult experience. We offer detailed guidance on claiming widowhood and survivor benefits to help you through this difficult period. Find out about the required documents, conditions and application procedure.

    How to report death to the tax office?

    Reporting the death of a loved one to the tax authorities is an important formality. Find out how to report a death to the IRS, who is responsible for paying taxes after death, and what deadlines must be met to avoid penalties.

    How to get your income tax back in 2024

    Find out how when you calculate your income tax, a credit balance will appear on your tax account in July.

    Tax return

    en_USEnglish