The family quotient makes it possible to adjust the amount of income tax due by a taxpayer according to the shares allocated to his tax household. He can for example benefit from tax advantages according to the number of children at his expense. The family quotient is recalculated once a year, at the time of the income declaration. How is it calculated? From what income? Answer. © Westend61 – Family quotient: What you need to know how to save backup Receive the summary income tax alerts to see more than the family quotient? Number of shares of a tax household for the calculation of the family tax quotient corresponds to the number of shares of a tax household for the calculation of income tax. He is fixed according to the family situation of the taxpayer and the number of people he is responsible for. Many administrations or communities request it to allocate certain aids or to calculate the prices of the school canteen or the crèche. An element of calculation which reduces the amount of taxable income the objective of the family quotient is to divide the taxable income of the taxpayer according to the number of shares making up his tax household. This quotient makes it possible to take into account the family charges incumbent up on the taxpayer. Its number of shares is appreciated: on January 1ᵉʳ of the taxation year, or on December 31 if family charges increased during the tax year (example: a birth). Who are dependent on the tax household? For the calculation of the family quotient, it is necessary to take into account the people payable by the taxpayer. Thus, we find in the composition of the tax household, for the calculation of the number of shares: the minor children of the taxpayer; people attached to the taxpayer’s tax household such as adult children under the age of 21 or under 25 pursuing their studies; persons holding the Mobility Card Inclusion mention “Invalidity” or the old invalidity card in the process of validity as soon as this person lives in permanent. When a person quoted above is attached to the tax household, the number of shares is increased. Note: since January 1, 2023 and according to article 195 of the general tax code modified by article 8 of the finance law for 2023, war widows and widowers over the age of 74, whose spouse holds the combatant’s card, can benefit from an additional family quotient. Read also: Declaration of income: should CAF aid at taxes? How is the family quotient calculated? A calculation carried out by the tax administration family quotient is calculated each year by the tax administration according to the information transmitted by the taxpayer on his tax return. The family coefficient corresponds to the number of units (dependent) making up the tax household: for single taxpayers, divorced or widowed, they are imposed on the one hand on the one hand family quotient. For married or PACS taxpayers, they are imposed on the basis of two shares of family quotient. Calculle formula calculation of the family quotient is as follows: net taxable income / number of tax shares the amount obtained is then subject to the progressive scale of income tax, then it is multiplied by the number of shares of the tax household. We then obtain the amount of income tax due. Calculculus of the family quotient by Cafpour Determine the family quotient, CAF is based on the annual resources of the beneficiary, after deduction of social allowances. The result is divided by 12 to obtain a monthly average, to which are added family benefits paid per month. The whole is then divided by the number of shares. For example, a couple with three children will have a lower family quotient than a couple without children with the same income. The amount of social assistance will then be more important for the family with three children. Where to find your family quotient? The family quotient appears on the taxpayer’s tax notice and on his CAF certificate. The beneficiary only has to connect to his personal CAF account to recover it. People who are not or more beneficiaries can use the online service of the interministerial digital management. Just indicate the name of your town and connect via its FranceConnect identifiers. Identity data, parent and children are then automatically recovered from the family allowance fund. Read also: too perceived of CAF: reimbursement, dispute and sanctions increase in the family quotient taxpayers who have dependent children benefit from an increase in family quotient shares. Note: Children holders of the CMI (inclusion mobility card) with the invalidity mention make their parents benefit from an additional half-share. What is the cap of the family quotient in 2025? Family quotient increases are likely to be the subject of a cap to limit the tax advantage provided by the family quotient system. The amount of tax reduction from which a taxpayer benefits from the application of the family quotient cannot exceed (for the taxation of income 2024): 1,791 euros per additional half share; 895 euros for each additional quarter to note that there are ceilings specific to certain situations such as isolated parents, widowed, invalid or even veterans. The amount of the net taxable income taxable divided by the number of family quotient shares Calculate the amount of taxpayer income tax, the tax administration divides the amount of the taxable net income declared by the number of tax shares. The family quotient is then obtained. The result obtained is then subject to the income tax scale and then multiplied by the number of shares making up the tax household to obtain the amount of income tax due by the taxpayer. EXEMPLE for a married couple with two married couple with two dependent children (the number of family quotient shares is therefore 3) declares a net taxable income of 90,000 euros. The family quotient is equal to the taxable net income divided by the number of shares, or 90,000 / 3 = 30,000 euros. This base then determines the tax on which the progressive scale applies to a share. Tax administration then calculates the income tax according to the progressive scale on an entire part of a family quotient, i.e.: 1ʳᵉ income slice up to 11,497 euros imposed at 0 % 2ᵉ income tranche from 11,498 to 29,315 euros: 29,315 euros – 11,497 euros = 17,818 euros 17,818 euros x 11 %. Which gives 1,959.98 euros. 3rd income tranche from 29,316 euros to 30,000 euros: 30,000 – 29,315 = 685 euros amount is taxed at 30%, or 685 euros x 30% = 205, 50 euros for the calculation of the income tax due, it is advisable to multiply the contribution thus obtained, 2,165.48 euros (0 + 1,959.98 + 205, 50 euros), by the number of parts of the tax household (3) 2,165.48 euros x 3 = 6,496.44 euros. The couple should therefore a tax of 6,496.44 euros. Maximum of the tax benefit the couple, due to the cap of the family quotient, is entitled to a maximum tax advantage of 3,582 euros (1,791 euros x 2), for their two children. As a married or childless couple who have received a net taxable income of 90,000 euros will have a tax of 13,330.96 euros, the advantage linked to children is 6,834.52 euros (13,330.96 euros – 6,496.44 euros). This amount exceeds the maximum tax benefit to which the couple is entitled for their two children of 3,252.52 euros (6,834.52 euros – The gross final tax couple with two children will therefore have a tax of 9,748.96 euros (6,496.44 euros + 3,252.52 euros). The marginal tax rate (TMI) of this couple with two children is 30%, because its family quotient situates it in this tranche. But all of its income is not taxed at 30%. Receive our latest news each week, the flagship items to support your personal finances. (tagstotranslate) imp u00f4t on income (T) d u00e9claration de income
