French income declaration: new tax credit requirement postponed

ADDITIONAL INFORMATION REGARDING DOMESTIC WORKERS WILL BE REQUIRED FROM NEXT YEAR Plans for taxpayers who claim tax credits for personal services (services à la personne) to provide more

information about the people they employ have been postponed until next year. In turn, declarants will not have to complete a new section on their 2025 tax declaration, contrary to

information that initially appeared in the 2025 budget. The budget stated that taxpayers who employ workers such as a gardener, helper, nanny etc would need to declare details about the

employee in a new section of their annual declaration. It stated that declarants would need to detail “the nature of the organisation and the legal or natural person (employee via Cesu,

company or association to whom [money] has been paid as well as the nature of the services rendered.”  This information was set to be included via a new box, either on the main 2042 form or

the additional 2042-RICI form relating to tax credits.  However, the late passing of the 2025 version of the bill – caused by the motion of no confidence against former prime minister Michel

Barnier and his budget in December 2024 – meant that tax authorities did not have time to implement for this year’s return. The budget does not include a specific date when the measure must

come into effect, however tax authorities told media outlet BFMTV it will be introduced in the 2026 version of the declaration (for 2025 income) CERTAIN INFORMATION MUST STILL BE DECLARED 

Despite the delay in adding this new step to the declaration, those applying for tax credits still need to deliver some information in the 2025 return. Declarants must declare how much they

spent on the services overall, and will receive credits of up to 50% of the expense.  The €12,000 tax credit limit can be higher depending on the number of children or over 65s, if any, in

the tax household.  Some 5 million households applied for tax credits in 2023, at a cost of roughly €6 billion.  Read more: How do tax credits for help at French home work?