Modulation of the Advance on tax Credits and Reductions – Roebert

Modulation of the Advance on tax Credits and Reductions

If a taxpayer has reduced his 2021 expenses giving rise to the right to a reduction and / or an eligible tax credit in advance compared to those of 2020, it is possible to act so as not to find themselves in the obligation to reimburse. earned income credit calculator the advance of January 2022 too perceived.

To avoid having to make such a reimbursement in September 2022, you can:

  1. or ask not to benefit from any advance
  2. either reduce the amount of the advance to be received

The modulation request can be made online, in its specific space on, in the Manage my withholding tax section. This system is now closed for the deposit to be received on January 15, 2021.

The opening and closing dates of the online service to modulate or cancel the advance to be received in January 2022 are not yet known. As a reminder, last year, the schedule was as follows:

  1. September 29, 2020: opening date
  2. December 8, 2020 inclusive: end date

Advance received on RICI (reductions and tax credits)

A box in the 2020 income tax return is titled “Advance of 60% of reductions and tax credits paid at the beginning of the year to your bank account”, line 8EA.

This field is pre-filled by the tax authorities: earned income credit calculator the amount indicated corresponds to the amount paid by the public finance services in January 2020 (January 15 by transfer, end of January by letter-check) for the deposit on credit. tax and / or tax reduction.

The sum is equal to 60% of the reductions and tax credits that we benefited from in 2020 on the basis of the payments made by the taxpayer in 2019. If we have not benefited from any tax system such as tax credit or tax reduction in 2021 for 2020, the amount indicated will be refunded in September 2021.

Withholding tax: reimbursement of tax reductions in July-August 2021

Two-step reimbursement

  1. Two-step reimbursement
  2. The reductions in income tax (IR) came, before the entry into force of the withholding tax, in reduction of the amount of tax due, without the possibility of reimbursement. If the tax reduction was greater than the tax calculated before tax benefit, the excess was generally lost, sometimes carried over to subsequent years for certain devices.
  3. Within the framework of the withholding tax, the expenses incurred giving rise to the right to tax reduction are taken into account, without loss of the associated tax benefit.
  4. However, as the rate of withholding tax does not take into account IR reductions (or for that matter tax credits), the return of the tax advantage is subject to a partial or total refund ( depending on the device used) in two stages:
  5. in January 2021 (in the form of a deposit)
  6. and the balance in the summer of 2021 … a bit as if it were a tax credit, either July 20 or August 6


We will insist on the fact that unlike the old system of installments (payment by third parties) or monthly income tax in force until 2018, it is no longer possible to adjust the rate of deduction. at the source according to the reductions and tax credits from which one benefits. Originally, the new IR collection method was synonymous with an additional cash effort, since it would have been necessary to wait longer to reap the benefits of the credit or tax reduction system used.




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