Pension: You get several hundred euros more every year

Created: 03/11/2022 05:34

By: Lisa Mayerhofer

You still have to pay taxes when you retire.

(Iconic image) © Christin Klose/dpa-tmn

The pension is progressively taxed more and more.

In return, pensioners can claim many expenses in their tax return and receive several hundred euros.

Berlin - Pension* is not the same as pension*: taxes have to be paid even in retirement.

However, this allows pensioners to get money back with a tax return.

Because after the transitional regulation, pensions from the statutory pension insurance are gradually being taxed more and more*, while contributions paid for old-age provision can gradually be deducted from tax in larger amounts.

This is how the pension is taxed

In 2040, the proportion of the pension that is taxable should then be 100 percent.

Accordingly, for a pensioner who retires in 2006, for example, 52 percent of his earnings are taxable.

And for a new pensioner who leaves the world of work behind in 2022, 82 percent are already subject to tax.

While deductions should also be included in the calculation for those born at age 63*, there is a tax exemption for pensions that applies to everyone: in 2021 this exemption was EUR 9,744 for single people, and in 2022 it will be EUR 9,984.

The double value applies to married and registered civil partnerships.

Anyone who earns more income than the tax allowance as a pensioner must pay tax on every euro above this amount - at the percentage that applied when he retired.

What pensioners should consider*: Income tax not only counts for the statutory pension, but also for any other income such as rent, company pension or dividends from shares.

Many retirees should therefore submit a tax return - and can save money with it.

Pension: Submit a tax return – which expenses can be deducted from tax by pensioners

Because while more and more pensioners are dependent on Hartz IV, you can also deduct certain expenses from your taxes in retirement.

This is particularly worthwhile if these exceed the flat rates estimated by the tax office.

Expenses that are of interest to pensioners include, for example, special expenses.

This allows the costs of health and nursing care insurance, but also donations to be deducted.

Pensioners can also claim income-related expenses - these include account management fees and the costs for tax or pension consultants.

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And anyone who has bought a new walking aid or glasses can claim this as an extraordinary burden.

Travel expenses to the doctor can also be deducted in this area.

Caution: The amounts must exceed a certain limit, which depends on the amount of income.

Retirees with a small pension: Deduct large amounts and save a lot

This means that anyone who draws a rather small pension can quickly cross the border and can deduct large amounts and save a lot.

In this case, if the budget allows, it makes sense to buy several new devices in one year (e.g. new hearing aids as well as new glasses), because this way more of the tax can be deducted.

Visits to craftsmen and household help can also be claimed for 20 percent of the tax - under household services and craftsman services.

Caution: Only wages and travel expenses can be deducted, not material costs.

If you can claim a lot of expenses, you can get several hundred euros every year through an accurate tax return.

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