TLDR: Family changes (marriage, PACS, death, divorce, PACS termination, birth, adoption, or taking in a minor child) alter the number of tax shares. These events must be reported to the tax authorities within 60 days. The calculation of shares depends on the family situation and the number of dependent children. In case of death, the calculation considers the tax household’s shares as of January 1st of the year of death. In case of separation, the child is deemed dependent on the parent with whom they primarily reside.
Events That Modify Tax Shares
The following situations result in a revision of the number of tax shares:
- Marriage or conclusion of a PACS.
- Death of a spouse or PACS partner subject to joint taxation.
- Divorce or termination of a PACS.
- Increase in family dependents due to a birth, adoption, or taking in a minor child under the conditions of Article 196 of the CGI.
Mandatory Declaration
Any change in family situation affecting tax shares must be reported to the tax authorities within 60 days of the event. This obligation applies to all affected taxpayers.
Calculation of Tax Shares
The number of shares is determined based on the family situation and the number of dependent children. Here are the general rules:
- Single, divorced, or widowed with no dependent children: 1 share.
- Married with no dependent children: 2 shares.
- Single or divorced with 1 dependent child: 1.5 shares.
- Married or widowed with 1 dependent child: 2.5 shares.
- Single or divorced with 2 dependent children: 2 shares.
- Married or widowed with 2 dependent children: 3 shares.
An additional share is added for each dependent child beyond the second.
Special Case: Death of a Spouse or Partner
In case of death, the tax calculation takes into account:
- The income and benefits received by the surviving spouse or partner, reduced pro rata temporis from the date of death.
- All the family quotient shares the tax household was entitled to as of January 1st of the year of death.
Allocation of Children in Case of Separation
In case of divorce, PACS termination, or de facto separation of unmarried parents, the child is considered dependent on the parent with whom they primarily reside, unless proven otherwise. In cases of shared custody, the divorce agreement or the court-approved settlement may provide for a different allocation.
Cap on Tax Reduction Related to the Family Quotient
The tax reduction resulting from the application of the family quotient cannot exceed €1,791 per half-share or half of this amount per quarter-share.
Examples of Uncovered Situations
The specific methods for calculating the family quotient for adult children or cases of adopting a child over 10 years old are not addressed here.