Inquiry on Taxation: Is it necessary to report welfare assistance from CAF for tax declaration purposes?

Getting the Lowdown on Declaring CAF Allowances for Taxes: A Cheat Sheet 💰 📊

By Léa Boluze, Web EditorUpdated on

What's Poppin': Discovering whether to disclose CAF benefits for your 2025 tax return? Here's a quick guide on what's in or out, plus how to get your CAF allowances into your tax return without any hassle.

What Benefits Need to Be Declared for Taxes?
What Benefits Don't Need to Be Declared for Taxes?
What CAF Allowances Need to Be Declared for Taxes?
Is RSA Taxable?
How to Declare the Activity Bonus Paid by CAF for Taxes?
What Benefits Should Be Declared?
How to Include Social and Family Allowances in Your 2025 Tax Return?
When is a CAF Declaration Required?

What Benefits Need to Be Declared for Taxes?

Loss-of-Income Compensation

Long story short, amounts received as compensation for loss of income due to events like:

Disability
Unemployment
Sick leave
Maternity or paternity leave
Adoption...

must be declared.

Unemployment Benefits and Daily Allowances

Unemployment benefits and various allowances paid by France Travail (ATA, ASS, and ARE)
Daily allowances for sick leave or accident
Daily allowances for maternity, paternity, or adoption leave

These must be declared, regardless of whether they're paid by Social Security, employer, or insurer or provident body.

Marginal Tax Rate (MTR): A Quick Summary

What Benefits Don't Need to Be Declared for Taxes?

On the flip side, benefits received for costly therapy for diseases or work-related accidents are exempt from disclosure. Temporary disability benefits and insurance benefits are also exempt, up to 50% of their amount.

Benefits received for work-related accidents or occupational diseases
Temporary disability benefits
Benefits from a contract of insurance under a voluntary supplementary health insurance scheme
Benefits received as a victim of asbestos or a radiation-induced disease, or as a victim of nuclear tests.

Asbestos Workers' Allowance: All You Need to Know

What CAF Allowances Need to Be Declared for Taxes? 💰

Exempt Allowances

The social and family benefits provided by the CAF (CAF primes and allowances) are generally exempt from income tax. These benefits are meant to partially offset the cost of raising kids or help the most disadvantaged live.

Affected Allowances

Exempt from declaration are amounts paid as allowances, primes, or income, including:

Family Allowance Fund (CAF): What It Is and How It Works
Family Supplement
Housing Allowances
Educational Allowance for Handicapped Children (AEEH)
Family Support Allowance (ASF)
Allowance for Handicapped Adults (AAH)
Back-to-School Allowance
Daily Presence Parent Allowance (AJPP)
PAJE (or Welcome Allowance for Young Children)
Handicap Compensation Allowance (PCH)
Christmas Bonus
Personal Autonomy Allowance (APA)

Note: Student Scholarships are also exempt from tax.

Is RSA Taxable? 😮

Active Solidarity Income (RSA), a social benefit intended to ensure its beneficiaries have a minimum level of income, is exempt from income tax and does not require disclosure.

How to Declare the Activity Bonus Paid by CAF for Taxes? 💰

The social bonus paid by the CAF is not taxable. This bonus aims to enhance the purchasing power of workers with modest incomes and encourages activity.

Housing in Kind Advantage: Insights, Amount, and Scale

What Benefits Should Be Declared? 🤔

If provided by the employer, certain allowances are exempt within limits. Income exceeding these limits needs to be disclosed in your taxes.

Restaurant tickets: The amount exceeding €7.26 per day in 2025 is taxable
Holiday vouchers: Acquired in 2024, the tax-free financial participation is limited to €1,802
Public transport subscription: Titles of subscriptions for public transport (Velib', Navigo pass) or bike rentals for commuting are not required to be declared. Tax-free financial participation by the employer is capped at 75% of the employee's fees
Home services: Financial aid for home cleaning services is exempt from taxes up to €2,540 per year

Home Employment: Unlocking the Tax Credit Potential

When filling out your income tax return in 2025 (2042 online or paper form), include any income that needs declaration.

CAF Allowances: No need to disclose the exempt allowances listed above, as they are not considered taxable income.
Social Benefits:as specified (e.g., France Travail, ATA/ASS/ARE) must be listed in the appropriate tax boxes.

When is a CAF Declaration Required? ❓

Changing Circumstances

To keep receiving CAF aid and prevent potential overpayments, update your situation declaration if your professional or personal life experiences changes. These changes may impact the amount of allocations you receive.

RSA and Activity Bonus: Required Declarations

With the exception of the quarterly declaration requirement before March 2025, modernize your way of life with the CAF, as they now fill in your social amount automatically in the CAF declaration. All you need to do is verify the information before confirming the declaration.

Around this article:

Income Tax
Family Allowances
CAF
Benefits

The Family Support Allowance (ASF) and the Allowance for Handicapped Adults (AAH) are among the CAF allowances that should be declared for taxes.
Benefits received as compensation for work-related accidents or occupational diseases are exempt from disclosure, as well as student scholarships.