Does cohabitation count for taxes?
Concubinage: definition
Cohabitation is legally defined as a free union, in fact, characterized by a Stable and continuous common life Between two people living as a couple, without having a legal link of kinship by marriage or by a civil solidarity pact (PACS). This definition is registered in article 515-8 of the Civil Code.
“Concubinage is a de facto union. It is marked by a stable and continuous common life between two people, of the same sex or different sex, who live as a couple. »»
Full legal independence
Unlike marriage or PACS, cohabitation does not create a particular legal status between partners: everyone keeps its full legal and heritage independenceunless they voluntarily make commitments to each other (e.g. purchase in joint possession).
Concubin: the same rights as singles for taxes
On the tax level, partners in cohabitation are considered to be single people. This means that they form two separate tax households and declare their income and pay their taxes individually. Unlike couples married or linked by a PACS, there is no possibility of joint declaration for income tax.
What is the difference between a free union and a notorious cohabitation?
Free union and cohabitation are often used as synonyms. But there is a nuance. Indeed, Free union is a General and informal concept which designates the fact that two people live together, while cohabitation is a legal category which supposes a continuous and stable common life recognized by law.
Is it mandatory to declare yourself in concoction to taxes?
No obligation for taxes
He is not compulsory to declare yourself in cohabitation with taxes, unlike PACS or marriage. Each partner is considered a single taxpayer for the tax administration and taxes. Everyone must declare their own income and complete their own tax return to define the amount of their taxes.
Case of social benefits
If a person receives certain tax or social aids (activity bonus, family allowances, RSA), they must declare your life in cohabitation, Because it influences their calculation. Similarly, for certain specific sections in the tax declaration (attachment of children, declaration of a dependent person), it may be necessary to indicate their partner or partner.
What is the advantage of declaring yourself in a cohabitation for taxes?
The income tax discount
Declare in partitions to taxes can benefit from certain tax advantages. The income tax discount thus allowsreduce the tax burden of taxpayers with modest incomeso that they do not pay a disproportionate tax compared to their financial capacity.
Its amount is calculated so as to reduce income tax to an amount floor. This floor amount is revised each year. Concubins can benefit unlike married or PACS couples with a joint declaration.
Concubinage life and tax deductions
If the partner in cohabitation have children or share common expensesthis can be taken into account in certain tax deductions, such as tax credits for dependent children.
Each partner can also deduct certain expenses to an annual ceiling of niches of 10,000 euros, or a total of 20,000 euros for the couple. This possibility allows them to maximize their tax reductions, which constitutes a significant advantage compared to married or PACS couples.
Concubinage or free union: access to social assistance
Concubins were considered single for the declaration of their taxable income, they can continue to benefit from certain aids and social benefits:
- Housing aid.
- Family allowances.
Some pensions, such as alimony or survivorical.
What are the consequences of partner on income tax?
In cohabitation, each partner declares its income separately and only benefits from the own family quotient shares, without the possibility of pooling charges as in a married or PACS couple to reduce the amount of its tax.
A drawback: no joint declaration of the possible income
Each partner must complete and file a personal income tax return. He is impossible For one of the cohabiting cohabits to declare its charge concubin even if the latter does not receive any income. The common tax declaration is reserved for married or PACS.
Declare a child when one is partner
In the event that cohabits have children, they have the possibility:
- to declare on the tax declaration of one of the cohabitees all minor children and adult children under the age of 21 or under 25 if they continue their studies on January 1 of the tax year;
- to them distribute cohabitingeach partner takes charge of a child. The same child cannot be charged with the two cohabiting coins.
Note that it is more interesting to attach a child to the parent who wins the biggest income so that the latter benefits from a reduction in its taxable base.
Tax on real estate fortune and cohabitation
Unlike income tax and transfer rights free of charge, IFI takes into account cohabitation in its calculation.
IFI: a tax on the heritage of the tax household
Real estate wealth tax (IFI) concerns natural persons whose net value of their real estate assets exceeds a certain threshold. Since its implementation in 2018, the IFI has replaced the solidarity tax on fortune (ISF) and specifically target real estate.
A single tax household for the calculation of the tax in the event of cohabitation
Unlike the applicable income tax rules, cohabiting cohabits are Considered one and the same home under the tax on real estate fortune. If the personal real estate assets of cohabiting cohabiting cohabiting heritage exceeds the sum of 1.3 million euros, they must declare their assets on a joint declaration.
No solidarity, but a liable
Thus, despite the fact that the General Tax Code provides that cohabiting cohabits are not united for the payment of the IFI, they are all same attachment in a joint manner and solidarity and receive a tax notice for their two names.
Housing tax and cohabitation
End of the housing tax on the main residences
Since 2023, no French does not pay for housing tax on his main residence. This abolition is part of a tax reform initiated to lighten the pressure on households. However, some municipalities retain the possibility of increasing the housing tax on second homes to combat the shortage of housing.
Case of the housing tax on second homes
Today, only the owners of a second home can be liable for the payment of the housing tax. For the calculation, the same rules as beforeapply. Thus, each property is subject to a single taxation in terms of housing tax.
Consequently, if accommodation is occupied by a couple in cohabitation, it is only established one housing tax in the name of only one of the occupants. There Distribution of payment of the tax is done by the couple and not by the administration.
Property tax and cohabitation
In case of individual real estate
Each owner of a property is liable for the property tax on the goods he holds on January 1 of the taxation year. Each partner is therefore liable for the property tax For the goods he personally has on January 1 of the tax year. The non -owner partner has no tax obligation concerning this property, even if it resides.
In case of common real estate
If the cohabits have a Well common real estate, a property tax notice on behalf of the two partners is established by the tax administration. They are then solidarity with payment property tax. Everyone can be prosecuted for the entire sum in the event of non-payment, independently of their share of ownership.
How to declare cohabitation for taxes?
For income taxes
For income taxes, There is no specific declaration to make To report a cohabitation, as cohabiting cohabits are considered to be two separate tax households. Everyone must make their own tax return, only indicating their own resources and charges.
No compulsory mention of cohabitation
He is not not necessary to expressly declare to the tax administration that cohabitation. The latter is not a legal situation recognized for a common taxation, therefore no section or no specific document is to be completed for the tax declaration.
Reduction or tax credit: can we benefit from it in cohabitation?
Individual only
In cohabitation, the majority of tax reductions and credits are not mutual. Tax reductions and credits (employment of an employee at home, donations, energy renovation work, etc.) are personal: they apply Only on the tax of the person who supported the expenseand who provides proof.
Case of shared expenses
Concubins cannot combine or share an expense on their two declarations, Unless they have each paid an identifiable part. Thus, for a shared expenditure (e.g. installation of equipment in a common housing, childcare costs), each cohabitation can declare its share, provided you justify the distribution.
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