Tax implications

[Ian]

My wife died just before Xmas. We were both resident, as far as tax goes, in France. I'm trying to sort things out, and I've a couple of questions regarding french tax.

We were paying tax, based on my occupational pension and two state pensions - hers and mine (not that I saw much of hers......). Now, the household income is reduced by her state pension (about €7500 pa?), but we're now a single person household so I suppose there will be lower allowances?

So, can anybody give me an idea of what this will mean in tax terms? I'd like to know in advance, in case I need to save up.

Secondly, I read somewhere that I can offset the funeral expenses against tax. Sounds very unlikely, but who knows.

Cheers

[Gardian]

Ian .......

First of all, sorry to hear about your wife’s passing. It must have been a difficult time these last couple of months.

Re your tax liability in 2018 (for 2017 income), nothing really changes. I presume that her state pension will have ceased “just before Christmas”, but this will make a negligible difference to your 2017 liability - you will get the ‘2 parts’ allowance whether she died in Jan 2017 or Dec 2017.

As for 2019 (for 2018 income), your liability will obviously be affected, but not necessarily massively. It entirely depends on the size of your occupational pension and any other earnings which you have.

Best of luck.

[Ian]

Gardian, thanks for the reply.

I forgot that tax is payable on last year's income, so yes, no change. As for 2019 payments, I've plenty of time to organise things.

Cheers

[Lehaut]

There is an allowance on up to 5000 euros from the estate for funeral expenses (not the wake!). Your Notaire should be taking care of this if the undertakers sent them the bill for payment, or you present it. Just been through this with a friends family.

[Ian]

Interesting, but it doesn't help me in this case. All my wife's estate is coming to me, so either way I have to pay the funeral expenses.

Pity.

[parsnips]

[quote user="Ian"]My wife died just before Xmas. We were both resident, as far as tax goes, in France. I'm trying to sort things out, and I've a couple of questions regarding french tax.

We were paying tax, based on my occupational pension and two state pensions - hers and mine (not that I saw much of hers......). Now, the household income is reduced by her state pension (about €7500 pa?), but we're now a single person household so I suppose there will be lower allowances?

So, can anybody give me an idea of what this will mean in tax terms? I'd like to know in advance, in case I need to save up.

Secondly, I read somewhere that I can offset the funeral expenses against tax. Sounds very unlikely, but who knows.

Cheers

[/quote]

 Hello,

 In fact you need to make two declarations for 2017 income ; one up to the date of decease,  as in previous years , and one from that date until 31/12/2017 as a widower.   It may be that you received no income in that period but it fixes the date for the tax office. Your liability for 2017 will be practically unchanged.

  As to the change in liability for this year's income  , without full figures it is impossible to say for sure , but if I take the two state pensions as 7500€ each your occ. pension as say 25000€, then your 2017 tax would be about 40000 - 3700 = 36500 x 0.14 -2746*

*formula for couple.

 =2364€tax  -decote 165€ = 2199€ payable (ignoring any other deductions you may receive).

   This year 2018  using the same income figures (less 7500€ ) and last years formula: 32500€ -3250 =29250 x0.14-1373**=2722€ (no decote due) tax payable 2722€

**formula for widower.

  On the figures I have guessed at the change would  not be life-style changing - obviously both figures would be greater the bigger your occ. pension , and any other income you may have.

   Even though no IHT is due between spouses , a declaration of succession has to be submitted to the tax authorities and funeral expenses can be included ( a bit pointless as you have said) ; the notaire can make it (for a quite high fee ), or you can do it yourself (-it's no more difficult than a complicated income tax declaration-I've done one for a friend) see here:

https://www.impots.gouv.fr/portail/particulier/declarer-une-succesion

 

  

[Ian]

Thanks for that, Parships.

It's a bit annoying that I've to complete another return, just for 11 days. Would they really mind if I didn't?

As far as the tax is concerned, there's UK rental income to be added in. Gardian very kindly did calculations for me, and it seems I'll be in a higher tax bracket and so due to pay more. Again, no choice.

However, I think I've won the third point. Apparently, if the estate is less than €50K (and it is), I don't have to make that declaration.

One out of three's not bad.

Cheers

[Ian]

Thanks to all of you who posted. Without a forum like this, life would be much more difficult.

Gardian (and Parsnips) have resolved all the anomolies in my taxes. I now have a clearer picture of what the future holds, impots-wise. (As for the rest, qui sait?)

Cheers

[Loiseau]

Bon courage, Ian.

[idun]

Ian, I would be unhappy if the board  did not exist, but if it did not, then you would simply make an appointment at the tax office, take all your paperwork along and solicite their help.

Even french people can struggle with all this when someone has died, and that is what they do.

Good luck!