Pension: Don't forget your tax return - what those affected should know

2021-01-27T06:43:56.034Z

Pensioners should definitely file a tax return. What those affected have to consider - and how they can often even get money back.

Pensioners should definitely file a tax return.

What those affected have to consider - and how they can often even get money back.

Anyone who retires after 2005 pays taxes on these afterwards.
Low pensions often remain tax-free.
Pensioners can also get money back from the tax office with their tax return.

Is the pension tax-free?

Unfortunately, no.

Nevertheless, many retirees can

save

one or the other obolus to the

tax office

If seniors receive a low pension, they may not have to pay any

taxes

at all

In addition to the gross

pension,

the

year of

retirement

is decisive

But be careful: if the pension is increased, the conditions for many retirees may change.

You can also read

: Saving Trick: How to improve your pension and save a lot of taxes

In the case of pensions, taxes are postponed

Since 2005 the pension has been taxed afterwards in Germany

However, only for those who have since retired.

To date, a flat rate of 50 percent of the gross pension has been taxed.

This value rose by two percent per year until 2020, and has only increased by one percent since this year.

So if you draw your pension for the first time in 2021, you will have to pay taxes on 81 percent of your pension in the coming year, as

calculated by

t-online

However, this rate then remains the same for the entire period of reference and does not increase again.

You can also read:

Deferring retirement leads to tax disadvantage - dispute ended up in court

Invest early tax advantages in the pension

In return, employees save taxes on their pension contributions

Here, too, the percentage rises annually.

At the beginning of the tax reform in 2005, they were still able to deduct 60 percent of their pension expenses via their tax return - this year it is 92 percent.

From 2025 these taxes will be completely eliminated.

In the long term, there are tax advantages for future pensioners: Since the pension is usually lower than the wages from gainful employment, employees now save money that they should invest sensibly for their old age.

Those over 50 can also invest: “An alternative for older employees can be additional payments to the statutory pension fund.

Together with the tax savings that are included, it is easily worth it, ”reports Stiftung Warentest.

Also read

: More and more retirees have to file a tax return

Tax return: Not every pension is taxed equally

But even if the pension is generally taxable, it remains tax-free for many pensioners

This is due to the annual

basic

tax allowance of 9,744 euros for single persons and 19,488 euros for married couples in 2021. This is offset against the taxable pension component.

If the amounts coincide or if the basic allowance exceeds the taxable pension, this remains tax-free.

However, this may change if the salaries increase.

From this moment on, pensioners are required to

file

tax return

It is not clear to many retirees whether this is already the case with them.

You can

request a certificate

from the

Deutsche Rentenversicherung

free of charge.

Once requested, the applicant will automatically receive it every year.

Tip:

With tax calculators on the Internet it is easy to estimate whether there is a tax liability.

In addition, not all retirement plans are equally taxable.

Company and private pensions are fully taxed.

On the other hand, pensions from statutory accident insurance, war pensions and pensions for severely disabled people are basically tax-free.

Also read

: Tax return 2020: What to consider now

The tax return is also worthwhile for pensioners

The taxes that are due on a pension result from the

tax return

If you want to save annual back payments, you can make quarterly

advance payments

instead

- but only if you incur at least 400 euros in income tax per year.

Regardless of whether it is compulsory or not: the tax return is worthwhile.

Because many items can be removed.

This may reduce the tax amount back to zero.

The following are tax deductible:

Special expenses
such as contributions for long-term care or health insurance or donations
Extraordinary burdens
such as staying in a nursing home or employing domestic help
Advertising costs
- the lump sum is 102 euros per year
Household-related services
such as the caretaker or tradesman's
bills
.