How To Calculate Your Income Tax ?

Posted by Maria Smith on March 9th, 2020

                                                 Tax Calculator 2020
One year after the implementation of the new method of collection, the Ministry of Action and Public Accounts delivers an assessment of the withholding tax. The government takes this opportunity to communicate on the income tax cut from January 2020 for 17 million tax households, announced by Emmanuel Macron in April 2019. The executive notably reveals the proportion of taxable households benefiting from the measure by department. With 80% of beneficiary taxable households.
One year after the introduction of the withholding tax, which replaced the collection on tax advice on January 1, 2019 for the majority of taxpayers, it is the turn of the income tax scale to be turned upside down from January 2020. The objective of this new upheaval? Implement the 5 billion euro income tax cut for nearly 17 million tax households.
How to calculate your income tax?
To calculate the amount of your gross tax, you must first divide your taxable net income by the number of family quotient shares to which you are entitled. The latter depends on your family situation (single, married, PACS, divorced, separated widower or widower) and the number of people you may have dependent on (minor children, adults , disabled, disabled). Then, the 2020 income tax scale (detailed below) should be applied to the result of this division. Finally, you must add the tax amounts obtained by tranche and multiply the total by the number of shares. Take the example of a single person without dependent children who received a taxable net income of 35,000 euros. Under the rules for calculating the number of shares, the latter is only entitled to one. Here are the steps to follow to calculate your income tax:
Income tax simulation
The Directorate General of Public Finances (DGFiP) provides you with two online tax simulation tools. Which one to choose ? If, in addition to wages, pensions or pensions, property income, gains from the transfer of securities, social rights and similar securities, you must declare income from commercial, liberal, agricultural activity, investments in the overseas departments sea ​​or global deficits (professional deficits), prefer the "complete model". Conversely, if you only have basic income and expenses to declare, opt for the simplified version. For the tax simulator to work, the fields must be filled in euros, without the cents. The tax simulator works for the calculation of the 2019 income tax for 2018. With the entry into force of the withholding tax on income tax on January 1, 2019, the tax administration now offers a direct debit simulator, allowing the taxpayer to obtain a simulation of the monthly amount deducted by his employer.
What is the income tax scale?
The income tax scale is used to calculate the amount of gross tax: it is made up of 5 taxable income brackets and a tax percentage for each of these tax brackets. It is revalued each year to take account of inflation and thus preserve the purchasing power of households. The finance law for 2020 provides for the indexation of the income tax scale to inflation, i.e. a revaluation of the entry thresholds in the brackets of the scale, but also, in the objective to translate the income tax cut desired by the President of the Republic for 2020, a lowering of the rate of the first taxable bracket of the progressive scale of income tax. The slope of the discount is also reduced.
For more info visit here :-Tax Refund 2020

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Maria Smith

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Maria Smith
Joined: March 9th, 2020
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