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Calculation of tax on disability insurance benefits in addition to salary

Dear Sir or Madam,

I was a civil servant and was declared unfit for duty and dismissed from office (probationary civil servant). Additionally, I had taken out a private disability insurance policy amounting to €750 and have been receiving this as a benefit since my recognized disability and dismissal.

I now work as an employee and earn approximately €1,600 net per month.

Do I have to pay taxes separately on the €750 from my private disability insurance that I "earn" monthly? What deductions should I expect?

Steuerberater Knut Christiansen

Good day and thank you for using frag-einen.com!

The benefits of a private disability insurance pension are subject to taxation under § 22 EStG with the profit sharing component. The profit sharing component depends on the age at the beginning of the pension. For a fifty-year-old, for example, the share is 30%. This means that 30% of 750 EUR would be taxable. The tax on it is determined based on total income or taxable income in the respective calendar year. Experience shows that you can expect about 25% in taxes. In relation to my example, this would mean:

750 EUR x 30% = 225 EUR taxable --> x 25% taxes = approximately 55-60 EUR taxes per month.

An exact calculation can only be made when all your income is available. This is not possible within the scope of this forum, but would have to be commissioned separately. Either with a tax advisor or a local wage tax assistance association.

I hope this answers your question, otherwise feel free to ask for further clarification.

I would like to point out that this forum cannot replace a detailed and personal tax consultation, but is primarily intended to provide an initial tax assessment. Adding or omitting relevant information could lead to a different legal assessment of your issue.

Best regards

Knut Christiansen
Tax advisor

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Steuerberater Knut Christiansen

Steuerberater Knut Christiansen

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