Tax: how to declare your adult child’s income?

In principle, a child is subject to tax upon reaching the age of majority, even if they have no income. But it may be beneficial for parents to add it to their tax household. Capital explains why.

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– In certain cases, it is possible to add your adult child to your tax household.

Who says most say driver’s license, studies, but also… tax returns. Blowing out 18 candles will make your child a tax payer. And yet he doesn’t necessarily have to file a 2024 income tax return, because if he hasn’t left his family nest yet and remains your dependent, you can add him to your tax household. Which has many advantages for you as a parent. Increasing the number of shares for calculating the family quotient, contribution, tax credits, etc. Capital to make a point.

First scenario: your child is grown up and single. By adding it to your tax household, you increase the number of shares for calculating the family quotient with a maximum tax reduction of 1,759 euros per half share. But you can also be responsible for it your married or civil partner child who may be responsible for the family alone. This situation offers you a reduction in your taxable income of around €6,674 per connected person, whether it is your child, their spouse or their children. Finally, you can take advantage of the tax reduction if your adult child is in school at a secondary school (153 euros) or at a university (183 euros).

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How to register your child and declare your income?

If you want to add your child to your tax household, the latter must still submit a signed written request for attachment, in which he states that he waives personal taxation. Keep this document carefully as it may be required in the event of an audit by the tax authorities. “In case of separate taxation of the parents, an adult child can only apply to join one or the other tax household”determined by the website service-public.fr.

By adding an adult child to your tax household, you as a parent must declare the income he received in 2023 – if it is not taxable. There is no need to provide information on internship and apprenticeship allowances as long as they do not exceed the annual minimum wage (i.e. €20,815). However, if your child’s income from practice or apprenticeship is higher, then only the excess is taxable. Conversely, income from professionalization contracts must be recognized regardless of their amount.

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However, you cannot add your adult child to your tax household indefinitely. For the 2024 tax return, the latter must be under 21 years of age on 1 January 2023 or under 25 years of age on 1 January 2023 if they are continuing their studies on the same date or 31 December 2023.

Alimony payment, another option to consider

After the age of 25, your child must declare his income himself. If these are not enough, you can pay him alimony, which will be deductible from your taxable income. And that’s within the limit of 6,674 euros for the 2024 declaration of income received in 2023. If you house your child, you can deduct up to 3,968 euros without documentation. Obviously, your child must report the amount received to the tax authorities. In the event of an inspection, you will have to prove the actual payment of alimony and the absence of sufficient income for your adult child.

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