More and more retirees are obliged to file a tax return
You have just have some years till reaching your retirement age or you are already retired? Now you would like to know whether you are obliged to file a tax return, to what amount you have to pay taxes or which possibilities you have to save taxes? We would be pleased to support you in all your tax issues.
Many retirees first learn about their obligation of filing a tax return by a letter of the tax authorities. This makes many person concerned unsecure. In no case you should ignore this letter. If you don't file a tax return, in spite of multiple requests, the tax authorities are allowed to estimate your tax amount.
As a matter of course we answer all your questions understandably and comprehensibly on all issues e.g.
- Income from investments and capital gains
- Income from renting and leasing
- Non-assessment note
- Declaration of exemption
- Medical expenses
- Household-related services
We take the time to discuss your questions in detail and also show you possibilities of how to save taxes and how to reduce your tax burden.
New regulation regarding the taxation of old-age pensions
As of 1 January 2005 the taxation of old-age pensions has changed fundamentally with the German Retirement Income Law. If you have already received retirement pension from the statutory pension insurance since 2005 or earlier, only 50% of the received pension payment will be treated as taxable other income. Therefore, your retirement pension remains tax-free until an amount of approximately 20.900 €. For spouses the amount is set to be double of approximately 41.800 €.
Retirement pension as of 2013
If you have received your retirement pension in 2013 for the first time, already 66% of the retirement pension will be treated as taxable other income. Consequently, your retirement pension usually remains tax-free only to an amount of approximately 14.904 € (for spouses approximately 29.808 €).
Please not that if you have further income from other sources, the obligation to file a tax return can exist much earlier. In the event that your retirement pension exceeds the before mentioned amount or if you have other income sources, you should check whether you have an obligation to file a German tax return.
Legal consequences if you don't file a tax return
If a retiree doesn't file a tax return although he is obliged to do so, he has to expect very unpleasant consequences. Non-filing can be compared with tax evasion. Therefore, you should check immediately whether you are obliged to file a tax return.
You need support on your tax return. Please get in touch with us. We are looking forward to receiving your message!
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