Even if pensioners have to file a tax return, this does not automatically mean that taxes will be incurred. For example, if you have income in addition to your pension, you can use a tax-free allowance.
Berlin (dpa / tmn) - Anyone who has additional income in addition to the pension must add it to the taxable portion of the pension. But pensioners can benefit from the amount of the old-age relief: this tax-free allowance can reduce taxable income depending on the year of birth.
He is entitled to persons who have reached the age of 64 when they retire. The Federal Chamber of Tax Advisers draws attention to this.
The allowance decreases from year to year. For those who met the requirements for the first time in 2018, the allowance will be 17.6 percent from 2019 onwards. However, the tax authorities take into account a maximum of 836 euros. The retirement benefit amount is applicable for income from rents, wages and capital gains. Exception: A pensioner works as a mini job and only earns up to 450 euros per month - then this income is tax-free.
Tax exemption applies when the employer pays the flat rate wage tax of 2 percent. In this case, the flat-rate wages and the flat-rate wage tax are not taken into account in the case of an income tax assessment by the pensioner. The taxable income of the pensioner is not increased by the income from the mini-job. An old age relief amount is not granted in this case if the pensioner does not have any other additional income besides pension income and mini job.
Pension increases are 100 percent taxable. So far, part of the pension has been tax-free - the amount varies depending on the retirement age. Once determined, the share remains unchanged for the following years - however, overall it decreases. While 50 percent of the annual gross pension was still tax-free for Neurentner in 2005, it will only be 22 percent in 2019. Those who retire in 2040 will then have to pay full tax on their pension.
