Getting started with French tax returns

Those of us from the U.S. have a very particular idea of what tax season means. But the U.S. system is not especially typical of what you see in other countries throughout the world. In France, expect to see something much simpler— at least after the first year.

The first year…

To begin with, the French system is geared toward telling you what you owe based on income information collected by tax authorities throughout the year. This means that your first year in France will require a little more effort, as you want to ensure that all of the starting information – from family size to assets or foreign income – is correct. This first year’s return is also crucial for setting up the ongoing tax payments that will prevent big end-of-year tax bills in the future. Your particular information will be established online at this site: https://www.impots.gouv.fr/accueil. And you will use the “Espace particulier” to access the records they already have for you, report or submit forms and pay any taxes due. Note the “International” section for information geared to those expat in France (or French citizens who are abroad) and the English Language option at the top right corner of the site.

Getting online

Getting into that “Espace particulier” the first time can be a little tricky if you have not yet been given your French tax number (“numéro fiscal”). Much to the confusion of Americans, the number that French people refer to as a social security number (“numéro de securité sociale” or “numéro de sécu” for short) is not a tax ID as it is in the U.S. Here that number refers to your ID in the health care system. So we need a second number for tax purposes.

Previously, getting your tax number for the first time as an expat meant you had to mail your first return and then wait for the tax number to issued for future use. You can still do things that way. Alternatively, you could go to your local tax office with an ID to request a tax ID number, and that is still an option, as well. But the French government has been working hard to put as much online as possible. So you now also have the option of getting your numéro fiscal using an online verification system. This will ask for other French ID, which is where your French numéro de sécu can come in handy.

This page will guide you through the options for getting your tax ID set up: https://www.impots.gouv.fr/particulier/questions/comment-creer-votre-espace-particulier-pour-declarer-en-ligne.

Finding your forms

Like the U.S. Form 1040, the French Form 2042 is the main form every individual or family will file. That will be prefilled for you after the first year. In addition to the 2042, you will need to identify the Form that fits each different source of income you receive. So you will fill out a Form 2044 if you have income from an unfurnished rental (but a 2013 if it’s furnished), a Form 2074 for capital gains and a 2047 for income earned abroad (which you will also list on the 2042!). And don’t leave off the Form 3916 for bank accounts held abroad.

The first year can be a headache as you create your first “package” of forms. After that, French tax reporting for individuals and families is relatively straightforward. So French people do not, in general, need the accounting and tax preparation firms we have in the U.S. You can, however, get help from almost any financial advisor or, of course, financial services firms geared toward expats.