How can I optimize my taxes as a retiree?
June 16, 2023 | 40,00 EUR | answered by Anna Richter
Dear tax attorney,
My name is Elvira Hohenberg and I am a retiree. In recent years, I have been experiencing more difficulties with my tax return and I wonder if there are ways to optimize my taxes as a retiree.
My current situation is as follows: I receive a monthly pension of 1,200 euros and have no other sources of income. I live alone and do not have any children whom I could claim as dependents for tax purposes. I have always done my tax return by myself, but lately I feel like I might be giving away money that could rightfully be mine.
My concerns are that I fear not fully utilizing all possible tax benefits available to retirees. I am unsure if I can deduct certain expenses or if there are other ways to reduce my tax burden. I want to make sure that I can keep all my money and not pay more taxes than necessary.
Therefore, my question to you is: How can I optimize my taxes as a retiree? Are there specific expenses I can deduct? Are there any special tax benefits for retirees that I may not be aware of? What advice do you have for me to reduce my tax burden and maximize my income?
I would greatly appreciate your support and advice.
Sincerely,
Elvira Hohenberg
Dear Mrs. Hohenberg,
Thank you for your inquiry and your interest in optimizing your taxes as a retiree. It is understandable that you are concerned about not taking full advantage of all possible tax benefits and potentially giving away money that is rightfully yours. I am happy to provide you with some tips and advice on how to optimize your tax burden as a retiree.
First and foremost, it is important to know that pensions are generally subject to taxation. However, there are certain allowances and tax benefits that retirees can claim to reduce their tax burden. An important point here is the so-called pension allowance, which varies depending on the amount of the pension and the start of the pension. This allowance ensures that not the entire pension has to be taxed.
Furthermore, retirees can claim certain expenses as tax-deductible. These include, for example, costs for health and nursing insurance, household-related services, craftsman services, or donations. Therefore, it is worth keeping all relevant documents and invoices carefully and including them in the tax return.
As a retiree, you also have the opportunity to deduct special expenses such as pension provisions or contributions to the Riester pension. Here too, you should check whether you can claim these expenses as tax-deductible.
Another important point is potential tax benefits for retirees, which are often unknown. These include, for example, the so-called relief amount for seniors, the pension allowance for severely disabled individuals, or the option of joint assessment with your spouse if they are still alive.
I therefore recommend seeking professional help in preparing your tax return to ensure that all relevant tax aspects are taken into account. An experienced tax advisor or specialist in tax law can help you reduce your tax burden and maximize your income.
I hope this information is helpful to you and am available for further questions. Good luck in optimizing your taxes as a retiree!
Best regards,
Anna Richter
Tax lawyer
