Pensioners have been getting more money since July.
But the pension increase also has a downside for many retirees - which many of them will have to reckon with in the future.
Since the beginning of July 2020,
pensioners
can
look forward to more money *
.
The pensions in the west were increased by 3.45 percent and in the east by 4.2 percent.
However, there is also bad news for many of those affected: According to wage tax assistance for employees, the plus has a side effect.
As a result, many retirees become taxable again.
Pension increase 2020: What many retirees can expect from tax
Because: Every
pension increase
is added to the
taxable pension
portion, according to a report by the German Press Agency (dpa) on the subject.
As a result, the taxable pension payments for many retirees would exceed the basic allowance.
The result: You become taxable again and have to submit a tax return.
Read here:
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Tax return for pensioners: deduct medical expenses
After all, pensioners can at least
claim
tax
deductions for many expenses
.
According to the dpa report, for example, extraordinary burdens could be considered - including expenses that arise from illness, disability or care.
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For example
,
pensioners
could
claim
for
tax purposes
,
for example, “co-payments for medication”, “expenses for medical aids”, costs for physiotherapy or, for example, for cures or rehabilitation measures prescribed by the doctor - as well as the costs for glasses.
But: Extraordinary burdens would have to exceed a limit in order to have a tax effect.
This reasonable burden is dependent on the amount of income.
Read here:
Until you retire: You should have that much money in your account by now
What about the
costs
of a
household help
or, for example, a
gardener
?
Pensioners could also claim such expenses from tax.
Or when someone
has hired
a
craftsman
for repair or maintenance work in the household
.
The
invoice
must be paid by bank transfer.
You can deduct 20 percent of the wage and travel costs, but not costs for materials.
According to the report, household-related services have a tax-reducing effect of a maximum of 4,000 euros, while craftsmen's services have a maximum of 1,200 euros.
Further reading:
Saving trick: How to improve your pension and save a lot of taxes.
(ahu) * merkur.de is part of the nationwide Ippen-Digital editorial network.
Help with the tax return
Taxable?
Appropriate control software (promotional link), in which the individual steps are clearly explained, can be of great help.
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