Disabled pensioners may be exempt from filing tax returns.
Starting July 1st, a pension cutback might necessitate tax declarations for numerous pensioners. However, this requirement can be omitted if one receives an approved disability certificate.
Around 21 million pensioners will witness an increase of 4.57% in their pensions from July 1st. As a result, some of these pensioners, who haven't previously filed taxes, may now be subject to taxation on a portion of their pension.
As per calculations by Finanztip, this applies to individuals retiring in 2024 with an annual gross pension exceeding €16,434. After subtracting common healthcare and long-term care insurance costs, present tax contributions, and pension allowances, their pension will exceed the current basic tax-free allowance of €11,604.
Pensioners who retired earlier can still have higher pensions without submitting a tax declaration. For instance, those who retired in 2010 might reportedly still receive approximately €19,573 in pension without filing taxes. However, this may differ due to additional income or high deductible expenses.
Application is sent to the competent pension office
Under specific conditions, pensioners can escape the tax declaration obligation. The Federal Association of Tax Advisory Associations (BVL) states this occurs when they can provide tax-reducing circumstances. For example, this applies when they have a disability and have been granted a disability degree (GdB).
Even with a GdB of 20, taxpayers receive an annual additional deduction of €384. With a GdB of 50, it is €1,140, and for the severely disabled, the additional deduction amounts to €7,400. In combination with the symbol "aG" for exceptional mobility impairment or "TBI" for deaf-blindness, the tax burden is reduced by an additional €4,500 starting from a GdB of 80. Disabled persons also receive this relief. According to BVL, the maximum deduction could amount to €11,900 per year through the GdB.
BVL managing director Erich Nöll suggests, "When applying for care, an application for degree of disability determination and the corresponding symbols should be submitted simultaneously." Only then can pensioners and taxpayers take advantage of the disability tax allowance. The corresponding application is forwarded to their local pension office.
Read also:
- Some concerned taxpayers may seek advice from their local Tax Advisors due to the increased pension income, leading to potential advertising expenses for these advisors.
- Upon receiving the tax assessment notice, taxpayers in the Taxpayers' Association might discuss tax tips to minimize their taxes, particularly focusing on the disability tax allowance.
- The Tax Office will consider the disability certificate and the additional deductions granted based on the degree of disability (GdB) when assessing the tax return of eligible pensioners.
- To ensure maximal benefits, both disabled pensioners and taxpayers are advised to jointly apply for the degree of disability determination and the corresponding symbols to the Tax Office, avoiding any penalties or missed discounts related to the tax declaration.
