Tax return mileage rates: No mileage deduction advantages generated by tax authorities this year
Gearing Up for Your Tax Return Deadline? Here's a Must-Know!
It's almost time to tackle your tax return, with the deadline looming between May 22 and June 5. But wait! Why pay more tax than you should? Especially if you're using your car to commute. Here's a helpful tip that could help you lighten the load on your wallet!
As a taxpayer, your income is automatically compensated for work-related expenses, including your car commuting costs, with a 10% deduction. However, if you estimate these professional expenses to exceed this limit, you can opt for the deduction of their actual amount. To calculate these expenses, you'll need the official kilometer-based grid, released annually by the tax administration. The amounts you can deduct depend on factors like your vehicle's type, power, fuel, and daily work roundtrips (up to 80 km).
Here's a breakdown based on your fuel type.
For taxpayers with a gasoline or diesel car:
For taxpayers with an electric car:
Now, here's the bitter pill. This year, the administration has decided to keep the grid unchanged from last year, leading many drivers to face a higher tax burden.
Prices at the pump fell last year, with a -4% decrease for unleaded E10 (SP95-E10) and -5.6% for diesel. Yet, not all drivers experienced a decrease in their car expenses. Electric vehicle owners, for instance, faced a +9.8% increase in the regulated electricity tariff at the beginning of 2024. Add to that the estimated +4% increase in insurance premiums and continuous repair and maintenance costs, and all drivers get a raw deal.
But, here's the silver lining. If the allowance had been revalued this year, taxpayers could have saved anywhere from €5 to €20, depending on their marginal tax bracket, with a maximized 20% additional reduction for electric car drivers.
Don't miss out on your potential savings! Check the official tax calculator on impots.gouv.fr. Remember, complete an explanatory note for your various travel-related expenses, and keep all your receipts just in case!
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Keywords: tax return, tax declaration, Income Tax, allowances, taxation, fuels, car, Electric car.
Label your personal-finance expenses accurately for your tax return, as the actual amounts could lead to greater deductions rather than the default 10% compensation for work-related expenses like car commuting.
In the case of electric car owners, it's crucial to keep track of various travel-related expenses for potential savings, as a revaluation of the allowance this year could have resulted in additional deductions up to €20 for certain taxpayers.
