Income Tax Refunds: 16 Million Households Affected

This year, 16 million households will receive an income tax refund on July 24 or 31, according to the Directorate General of Public Finances (DGFIP).
 

The number of recipients has increased in recent years: as of summer 2023, 15.6 million taxpayers had received a refund, compared with 13.7 million in 2022.
 

This refund applies to households that were subject to a withholding tax rate that was too high relative to their financial or tax situation in 2023. In addition to a delayed update of the rate on impots.gouv.fr following a decrease in income, the refund may also result from eligibility for a tax reduction or tax credit.
 

Consequences of Tax Credits
Certain payments and routine expenses, such as donations, in-home employment costs, childcare expenses, and rental investments, qualify for tax benefits. These benefits are paid out in two installments. In January 2024, taxpayers received a 60% advance. The amount refunded in July corresponds to the balance of the tax reductions and credits owed.
“If you are due a refund, no action is required on your part,” states the DGFIP. It will be paid either by bank transfer, with the reference “REMB IMPOT REVENUS,” to the account on file with the administration, or by check mailed to your home address. In 2023, the average refund was 844 euros per tax household.
 

Out-of-pocket expenses for 10 million French people
Conversely, some households did not pay enough tax on their 2023 income. According to data from the DGFIP, this situation affects 9.8 million taxpayers this year. In 2023, 9.6 million people owed money to the government for their 2022 income, for an average amount of nearly 2,260 euros per household.
 

Don't panic. The taxpayers in question are not in violation of tax regulations. They will not be subject to late-payment interest or a surcharge on the tax owed if they pay their outstanding balance on time.
 

Payment Procedure As with tax refunds, affected taxpayers need to do almost nothing—just verify that the direct debit account listed in their personal account on impots.gouv.fr is correct and, on the day the payment is debited, ensure there are sufficient funds in the account. The payment will be debited automatically in one or four installments.
 

If the remaining balance is less than 300 euros, the amount will be debited from the bank account in a single payment on September 26. If the balance exceeds this amount, the remaining balance will be paid in four equal monthly installments from September through December 2024.