Income disclosure requirement: Is assistance from CAF subject to tax declaration?
Breaking Down Your CAF Benefits and Taxes: What You Need to Know
(Photo by Léa Boluze, Web Editor) Updated on
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Let's Get Straight to the Point
Wondering if you need to declare CAF benefits for taxes in your income tax return? Let's clear things up for you.
Social and Family Benefits for Your Taxes
Declare Compensation for Income Loss
When you receive compensation for income loss due to a life event such as unemployment, maternity leave, or adoption, you should declare these amounts.
Unemployment Benefits and Daily Allowances
Declare unemployment benefits from France Travail, including ATA, ASS, and ARE, as well as daily allowances for sick leave, accidents, or family leave. Daily allowances come from Social Security, employers, or insurers - you've got to declare them all.
Benefits Not for Your Taxes
Don't worry about benefits related to prolonged treatment or costly therapy for certain diseases, work-related accidents or occupational diseases up to 50% of the amount, temporary disability benefits up to 50%, benefits from voluntary supplementary pre-retirement insurance, or compensation for victims of asbestos, radiation-induced diseases, or nuclear tests.
CAF Benefits and Taxes
Family and social benefits paid by the CAF are generally tax-exempt. So, you don't have to declare family allowances, housing allowances, education allowance for disabled children (AEEH), family support allowance (ASF), disabled adult allowance (AAH), back-to-school allowance, daily parental presence allowance (AJPP), PAJE (welcome allowance for young children), handicap compensation allowance (PCH), Christmas bonus, personalized autonomy allowance (APA), or student grants.
What About RSA?
The Active Solidarity Income (RSA) ensures beneficiaries a minimum income level and is tax-exempt, so you don't have to declare it for taxes.
Activity Bonus for Your Taxes
The activity bonus paid by the CAF is designed to support employment and increase purchasing power for workers with modest incomes, making it tax-exempt and not taxable income.
Social Benefits to Declare
The parts of restaurant tickets not exceeding 7.26 euros and the financial participation for holiday vouchers, public transport subscription, and home services over specific limits are the only social benefits you need to declare for taxes.
How to Include CAF Benefits in Your Tax Return
When filling out tax return form 2042 (online or on paper), you must include the amounts you need to declare. CAF aids, which are not part of taxable income, do not need to be declared on your annual income tax return. Significant social benefits to declare in the "Other taxable income" section include France Travail (unemployment benefits) and daily sickness benefits paid by the CAF.
When to Declare to the CAF
Make a declaration to the CAF in case of changes in your professional or personal life to continue qualifying for benefits and avoid overpayments.
Until March 2025, beneficiaries had to report their resource amount in a CAF quarterly declaration for RSA or activity bonus; now, the net social amount is pre-filled automatically in the CAF declaration. The beneficiary just needs to verify it before validating the declaration.
Around this article
- Income tax
- Family allowances
- CAF
- allowances
- The activity bonus paid by the CAF, designed to strengthen employment and increase purchasing power for workers with modest incomes, is not considered taxable income.
- In addition to benefits such as family allowances, housing allowances, and student grants, which are generally tax-exempt, personal-finance experts recommend declaring certain social benefits, like the financial participation for holiday vouchers, public transport subscription, and home services over specific limits.
- Paternity benefits, just like maternity leave compensation, should be declared when receiving compensation for income loss due to a life event.
- GettyImages' photographs illustrating this article showcase diverse individuals in various settings, symbolizing the complexities and nuances of personal-finance matters such as taxes and CAF benefits.
