Income tax Refund: Repayment Dates 2021

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When is the refund of income tax in the event of overpayment or tax credit? What change with the withholding tax? The return schedule to know, regardless of the payment method used by the Public Treasury, letter-check or bank transfer.

When calculating the income tax in July, the taxpayer’s tax account may show a sort of credit balance if it has received a tax credit . The same applies if the total withholding tax paid in 2020 is greater than the final amount of income tax: in the event of a negative balance corresponding to an overpayment, the excess tax paid is a refund of the .tax refund schedule dates tax benefit during the summer.

In 2021, the tax services proceeded from the start of the year to the payment of 60% of tax reductions / credits in the event of declaration of eligible expenditure in 2020, on 2019 income.

What happens when the Public Treasury has to reimburse an overpayment or a refund when the tax credit is greater than the amount of tax due? On what date does the administration proceed with the payment of the sums to be returned?

2020 tax credit or overpayment: terms and dates of payment of the 2021 refund

Restitution in case of tax credit or overpayment

Tax credit for childcare costs , on renovation work, on loan interest for the purchase of a first house, etc. Many devices potentially give rise to a tax refund upon receipt. its tax notice : this occurs when the amount of the tax credit is greater than the gross income tax, or when a non-taxable taxpayer benefits from a tax credit.

Example of calculation of an income tax refund

Take the case of a taxable married couple with two dependent young children, looked after at home by a nanny for an amount of 600 dollars per month (i.e. 7,200 dollars per year):

  • income tax = 1,600 
  • personal services tax credit = 3,600 dollars (50% of 7,200 dollars)
  • refund amount = 2,000 dollars

In this case, the difference is returned to the taxpayer. tax refund schedule dates There is no action to be taken: the restitution is carried out automatically by the Public Treasury.

Restitution payment date in 2021: January and July

Since 2019, there are two payment dates for tax credits and reductions:

  • in January 2021 for the deposit
  • and in the summer of 2021 for the balance.

The Public Treasury has the choice between two means of payment to proceed with the payment of the amount to be returned, depending on whether or not it has the taxpayer’s bank details. Depending on the modality, the payment date varies.

Transfer to the bank account or postal check account

For the payment of the balance in the summer or of the tax reductions that were the subject of a payment in 2020, the payment from the end of July:

  • either Tuesday July 20
  • either Friday August 6

Transfers are therefore issued from week 29 (penultimate week of July), then during week 31.

For the 1st installment at the start of the year, the 60% advance on tax reductions and credits based on 2019 installments was paid on January 15, 2021.PLEASE NOTE: until 2018, a monthly taxpayer whose tax credit exceeds the tax due was reimbursed by transfer during the first half of August according to our information