Taxes Household: Parents, Cohabitation and Connection

Taxes Household: Parents, Cohabitation and Connection

The term tax household refers to all members of a household who are included in the same tax return.

The runtime of Foyer fiscal is a term used by the tax authorities to denote all individuals who are subject to a single tax return. For example, spouses and their dependent children or PACS partners may have income that is reported on a single tax return and therefore constitute one and the same thing Foyer fiscal. Conversely, a household can accommodate several tax households (For example, two people living together).

Currently, in France, you can only benefit from joint taxation in the case of marriage and PACS. If you live together and have children together, only one of the parents can take the dependent child or children into account in their tax return.

The concept of belonging of two roommates in the tax budget so is not the same when we talk about income tax or ISF. When it comes to income tax, the tax authorities consider life partners as not belonging to the same community Foyer fiscal and therefore two different tax returns are requested. At ISF, roommates are considered part of the same Foyer fiscal.

The number of parts of the tax budget relates to the notion of the family quotient. We summarize the applicable rules:

  • For a single person: one share
  • For a co-assessed couple (marriage or pact) and no children: two parts
  • For a married couple or PACS couple with 1 child: 2.5 shares
  • For a couple or PACS couple with 2 children: 3 shares
  • For a married couple or PACS couple with 3 children: 4 shares

to attach in the tax budget his parent or one of his parents must have an adult child who is 18 to 21 years of age on January 1 of the tax year (or attachment request letter).

His parents must keep it in case the tax authorities ask for it. All they need to do is fill in box D of their online tax return or page 2 of their Form #2042 or 2042 S. Parents’ tax return.

The idea of Foyer fiscal is very important for the calculation of property tax. In fact, all assets held by the members of the tax household are included in the calculation of the net asset value, which in turn determines the entry in the IFI.

Unlike income tax, people who live in partnerships are considered members of one and the same tax household. In which IFI frameworkthe tax budget never takes into account adult children, not even those who are included in the tax budget as part of income tax. On the other hand, assets of minor children are taken into account in the calculation.

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