With rising pensions, more pensioners will also be subject to tax. But if you pay attention to your tax return, you might get a better deal.
This year retirees will have to pay slightly more taxes than last year. The reason lies in the increased pensions. The magazine “Finanztest” (issue 8/2022) writes that new pensioners in particular have to expect more tax payments than earlier ones because less of the pension remains tax-free for each new year. Pensioners should therefore be aware of the tax savings options they have.
Retirees can also claim income-related expenses - for example for pension advice, expenses for the wage tax assistance association or tax advice. Costs above the standard amount of 102 euros are deductible. Anyone who is still employed and pays wage tax in addition to their pension in 2022 will even benefit from the employee lump sum of 1,200 euros or the costs actually incurred, writes “Finanztest”.
Expenditure on household chores reduces the tax burden - or items from the landlord's or manager's utility bill. Up to 20,000 euros for household help or care services can be claimed. In addition, up to 6,000 euros for wages, travel and machine costs for craftsmen's work are deductible. Important: Never pay the items in cash, only by bank transfer! This is the only way that the items will be tax deductible.
Donations to a recognized charitable organization reduce your taxes. A donation receipt or, in some cases, a booking or deposit receipt is sufficient as proof.
Expenditure on care or medicines
Costs for medicines, aids or therapies prescribed by a doctor are tax deductible - but only above the reasonable personal contribution. How high this is depends on income and marital status. A calculator from Stiftung Warentest provides information. The installation of a stair lift can also be claimed as an extraordinary burden.
Recently, there has been a tax-reducing lump sum for disabled people with a degree of disability of 20 percent or more. The tax office only takes this into account if the degree of disability was determined by the pension office.
Lump sum for maintenance
Anyone who cares for a person with at least care level 2 free of charge has been able to claim a flat-rate care allowance since 2021. Here are between 600 and 1800 euros in tax relief.
It is important to collect the respective receipts for the expenses over the year. As a rule, they do not have to be submitted to the tax office with the tax return. However, the authority can request the evidence in the event of ambiguities.
Pensioners can use a tax calculator from Stiftung Warentest to determine how high the tax burden for retirees is. This is available to interested parties free of charge on the Warentester website.
(This article was first published on Friday, July 08, 2022.)