What tax benefits do I have as a retiree?
January 9, 2024 | 55,00 EUR | answered by Ulrike Voss
Dear tax lawyer,
my name is Tobias Schönecker and I am a retiree. In recent years, I have not paid much attention to my tax obligations, as I mainly live off my pension and do not earn any additional income. However, I am now wondering if there are any tax benefits or opportunities for me as a retiree to reduce my tax burden.
Currently, I receive a state pension as well as a company pension. I also own a rental property. My annual rental income does not exceed the basic tax-free allowance, but I am wondering if there is anything I need to consider from a tax perspective.
Furthermore, I have heard that there are tax advantages for retirees, such as pension allowances or age relief amounts. However, I am unsure if I am eligible for these and how best to take advantage of them.
My concern is that I may not be taking advantage of tax benefits that I am entitled to as a retiree. Therefore, I would like to know from you specifically what tax benefits I have as a retiree and how I can best utilize them to reduce my tax burden.
I look forward to your expert advice and thank you in advance for your help.
Yours sincerely,
Tobias Schönecker
Dear Mr. Schönecker,
Thank you for your inquiry and your interest in tax benefits for retirees. As a retiree, you can indeed benefit from various tax advantages that can help reduce your tax burden.
First of all, it is important to know that pensions are generally subject to taxation. This applies to both statutory pensions and company pensions. However, there are various allowances and relief amounts that retirees can claim to reduce their tax burden.
An important allowance for retirees is the so-called basic allowance, which is €9,744 for the year 2021. This means that retirees do not have to pay income tax up to this amount. Since your rental income does not exceed your annual income, you should not have any tax issues regarding the basic allowance.
In addition to the basic allowance, retirees can also benefit from an age relief amount. This amount is staggered according to age and can be up to €1,900 per year for retirees from the age of 64. The age relief amount directly affects the income tax to be paid and can thus reduce your tax burden.
Furthermore, retirees have the opportunity to claim deductible expenses. These include costs for preparing the tax return, travel expenses for doctor visits, or costs for necessary work equipment. By stating your deductible expenses in your tax return, you can further reduce your tax burden.
To make optimal use of the mentioned tax benefits, I recommend creating a detailed overview of your income and expenses and seeking advice from a tax advisor or lawyer if necessary. Together, you can determine which allowances and relief amounts are applicable to you and how to best include them in your tax return.
I hope this information has been helpful to you. If you have any further questions or would like a more detailed consultation, please feel free to contact me.
Kind regards,
Ulrike Voss
