Main categories of revenues to be declared on annual forms

The reporting period for annual revenues begins and it seems useful to give a brief reminder of the various income and tax deductions that may be included in these returns. The forms are three in number, they must be sent to the French administration by the website: impots.gouv.fr.

MAIN CATEGORIES OF REVENUES TO BE DECLARED ON ANNUAL FORMS ​

N° 2042 C, 2042 RICI AND 2042 C-PRO

 

The reporting period for annual revenues begins and it seems useful to give a brief reminder of the various income and tax deductions that may be included in these returns.

The forms are three in number, they must be sent to the French administration by the website: impots.gouv.fr.

 

         I-2042-C FORM:

It must always be transmitted by all French taxpayers even if there is no income. It has the following topics:

     1- Taxpayer identification:

This part is used to report changes of address and changes in the family situation (marriage, divorce, new child, attachment of a child to the tax home, disability etc ...).

The informations provided here are very important because they will allow to calculate the amount of tax due.

Additional information must be provided by those who do not own a television set to allow them to not pay the audiovisual fee.

     2- Salary pensions and annuities:

This category of income generally does not require any intervention on the part of the taxpayer. In fact, the employer or the body paying the pension have already declared the amount paid and it is pre-printed on the return, just check the accuracy. Details of the amounts on the return are shown at the bottom of the last page.

     3- Income from securities and movable assets:

This part mainly concerns income from:

- Dividends of society,

-Various financial investments or life insurance,

-Interests various.

Here too, the informations have generally been transmitted to the tax authorities by the bank, the company or the financial institution.

However, the pre-printed amounts should be checked and modified if necessary. You must also add the amount of deductible expenses or tax credits that are not always automatically registered.

     4- Gains from the sale of securities:

These are capital gains from the sale of company shares made during the year. When securities are managed by a financial institution, these gains are shown in the corresponding box.

When they come from the private sale of shares in companies, the capital gain must first be calculated on a printed form N ° 2074.

     5- Property incomes:

This part relates to the income derived from the unfurnished rental of buildings, apartments or various premises.

- Owners subject to the "MICRO FONCIER" regime must indicate only the amount of rent collected during the year, a deduction for expenses will be automatically practiced.

- Owners subject to the other property tax systems must first determine the net income on a printed form N ° 2044 or 2044 SPE.

     6- Deductible expenses:

Charges that can be deducted from taxable income are shown here.

-C.S.G. deductible paid the previous year,

-Various amounts of support paid and deductible,

-Savings for retirement under the "P.E.R.P.".

     7- Various:

This framework concerns non-residents who have received income abroad, it allows to declare mainly:

-The source levy already collected,

-Income from French and foreign sources determined on the declaration N ° 2041 TM. This amount will be used to calculate the taxpayer's average tax rate,

-Taxes already paid abroad,

-The amount of the revenue exonerated,

-The amount of capital gains on tax deferral,

-As well as other information on income earned abroad.

     8- Extraordinary or deferred incomes:

Here we must indicate the income whose taxation will be spread over several years.

 

           II-2042-RICI FORM:

This form allows you to obtain various tax reductions and, eventually, the refund of tax credits if their amount exceeds the amount of tax payable.

It includes the following paragraphs:

  • Various donations and deductible contributions,
  • Deductions for children who are continuing their education,
  • Childcare expenses for children under 6,
  • Home Employment Expenses for services to people,
  • Premiums for the survivor's pension and disability savings plan,
  • Costs of living in a facility for dependent persons,
  • Loan interest for the acquisition or construction of the principal residence (only if it took place in 2010 or 2011),
  • Expenditures made in the main dwelling to facilitate access for persons with disabilities,
  • Certain amounts paid as compensatory benefits,
  • Deductible donations to organizations established in a European state other than France,
  • Works in the main house for the purpose:

   -Energy saving,

   -Better thermal insulation,

   -Installation of equipment using a renewable energy source.

 

III-2042-PRO FORM:

This document summarizes all income from self-employment activities. It comprises the following chapters:

     1- Identification of the taxpayers concerned:

These are the members of the tax household who have professional incomes.

     2- Income of micro entrepreneurs:

These are micro entrepreneurs who opted for the payment of a flat tax on the amount of their turnover.

     3- Farm incomes:

We declare in this chapter:

-Incomes subject to the micro agricultural regime (MICRO B.A.),

-Incomes subject to the real regime.

     4- Industrial and commercial profits:

This income category is divided into three parts.

  • Professional industrials and commercial incomes: It is income from activities in which the taxpayer participates personally.

   - "MICRO BIC" scheme: The gross turnover is declared and the administration will automatically deduct a standard abatement.

   - Real regime: We postpone the net profit determined on the form N ° 2031 (Balance sheet and appendices).

  • Non professional industrial and commercial incomes: They are activities in which the taxpayer don’t personally participate.

   - Micro regime,

   - Real regime.

  • Revenue from non-professional furnished rentals: This classification depends on several criteria such as the amount of turnover, registration with the commercial court etc ...

You can contact us to know your classification if you are renting furnished.

   - Micro regime,

   - Real regime.

5- Non-commercial incomes:

  • Professional non-commercial incomes: This conceals the income from liberal activities in which the taxpayer participates personally.

   - "MICRO BNC" scheme: The gross turnover is declared and the administration will automatically deduct a standard abatement.

   -Regime of the controlled return: We postpone the net profit determined on the form N ° 2035.

  • Non-professional non-commercial incomes :

   - MICRO BNC scheme,

   - Regime of the controlled return.

6- Tax rebates and credits:

These are various tax cuts or tax credits specific to professional activities such as:

            - Accounting fees,

            - Mecenat,

            - "C.I.C.E."

            - Learning,

            - Organic farming.

 

To close this presentation, we draw your attention to the fact that this year a portion has been added at the end of almost all income categories. The information that will be included will help determine the amount of exceptional income earned in 2018.

You have imperatively to fill in this part because, with the introduction of the withholding tax, the administration must know the amount of the current income 2018 in order to be able to apply the tax credit "C.I.M.R.".

 

We can of course help you to inform these statements at best.