The income tax return for pensioners

Not all pensioners have to file a tax return. Only if your pension is high or if you have additional income do you have to file an income tax return. We explain to you exactly when a tax return is due, what you should pay attention to, where you can find help and what you can deduct from your taxes as a pensioner.

Part of your pension is tax-free. The pension allowance determines how high this portion is (see also: link). The basic tax-free amount is also important: it determines the subsistence minimum and is 9408 euros for single people in 2020. To this sum you can add the lump sum for advertising costs for pensioners. This is 102 euros per year. As a single person, you can therefore earn your pension allowance plus 9510 euros a year tax-free. For couples assessed together, the sum is doubled. If you are below this limit, you normally do not have to file a tax return.

You will have to file a tax return if ...

• your income exceeds this amount (this also includes additional income, private pensions or company pensions, interest income and rental income),
• you are taxed together as a couple and one of you still receives a salary or has other income,
• the tax office asks you to file a tax return.

You should always respond to a request from the tax office. Otherwise your income will be estimated and this will usually be to your disadvantage.

Generally, a lump sum for income-related expenses of 102 euros is assumed. This lump sum was introduced to simplify the cumbersome filing and checking of small sums. For pensioners, the lump sum is significantly lower than for employees, because there are usually no more application costs etc. If you had higher income-related expenses, you can also deduct them from your taxes. However, you have to provide evidence of all expenses.

Income-related expenses include all expenses that serve to secure and maintain your pension income, for example:

• Tax consultancy costs
• Costs for a pension consultant
• Trade union dues
• Costs incurred in applying for a pension, for example, travel costs, postage, telephone costs, parking fees or office supplies.
• Court costs in the event of a dispute, as long as it concerns your pension
• Account maintenance fees, a flat rate of 16 euros per year.

If these costs exceed 102 euros, you can deduct them individually. If they are less than 102 euros, the full lump sum is still deducted. In this case, you do not have to prove your income-related expenses.

Even beyond advertising costs, there are a lot of expenses that you can deduct from your taxes. These include, for example, these things:

1. Donations: If you donate money to non-profit associations, parties or the church and can prove it, this reduces your tax. For sums up to 200 euros, you simply prove the donation with a copy of your bank statement. For higher donations, you must submit an original donation receipt.
2. Medical expenses as an extraordinary burden: If you have high expenses for your health, you can also declare them in your taxes. These include, for example, costs for hospital stays, prostheses and other aids, co-payments for glasses or hearing aids, medications, etc. However, the decisive factor for tax purposes is whether the costs exceed the so-called reasonable personal burden. And: Over-the-counter medicines can only be included if they are medically necessary. You can prove this, for example, with a doctor's certificate. An overview from the pharmacy of which medicines you have obtained there is usually not sufficient.
3. Disability allowance: If you have a degree of disability between 25 and 100 percent, you can deduct a disability allowance from your taxes. The lump-sum disability allowance depends on the degree of disability and certain characteristics. Some examples: If you have a degree of disability between 25 and 30 per cent, the lump sum is 310 euros per year. If you have a degree of disability between 65 and 70 per cent, the lump sum is already 890 euros. If you have a degree of disability between 95 and 100 per cent, you can deduct 1420 euros. If the characteristics "Bl" (for "blind") or "H" (for "helpless") are entered in the disability certificate, the lump sum is even 3700 euros. If you have health problems, it may be worthwhile to have a degree of disability determined now at the latest.
4. Travel costs in the case of disability: If you have a degree of disability of at least 80 percent, you can deduct a lump sum of 900 euros for travel costs from your taxes. This also applies to a degree of disability of 70 percent if the mark "G" (for "walking disability") or "aG" (for "exceptional walking disability") is registered.
5. Insurance contributions: You can deduct the full amount of your health and long-term care insurance costs from your taxes. Other insurances (for example, your private liability insurance, legal expenses insurance or car insurance) can only be claimed under certain circumstances.
6. Costs for a nursing home: If you live in a retirement or nursing home due to illness, you can deduct the costs for this from your taxes. The prerequisite for this is a care level.
7. Costs for a health cure: If you take a health cure for health reasons, you can also claim the costs incurred as an extraordinary burden. Especially if you have to bear a large part of the costs yourself, this can be a great help. However, before you take a cure, you should obtain a medical certificate from a public health officer stating that you actually need the cure!
8. Household help or care service: If you have expenses for an outpatient care service or a household help, you can deduct these as household-related services.

Even as a pensioner, filing a tax return can be quite complicated. If you have to file an income tax return, this does not mean that you will actually have to pay tax in the end. However, it is important that you declare all deductible expenses. This includes, for example, advertising costs, but also some other expenses. If in doubt, you should consult a tax advisor or a tax help association. You can also deduct their costs from your taxes as income-related expenses.