Ask a tax advisor on the topic of Income tax return

EU pension and personal bankruptcy

February 19, 2011 | 40,00 EUR | answered by Dipl.BW/SB Ulrich Stiller

Dear Sir or Madam,

I have been married to my husband for 2 years. Since 2007, I have been receiving disability pension and have a 50% disability rating. My husband is currently in private insolvency, which existed before our marriage.

Do we need to file a tax return? And which tax classes are best for this "mixed ratio"?

Thank you for your efforts!

Dipl.BW/SB Ulrich Stiller

Dear inquirer,

Thank you for your inquiry, which I would like to answer based on your information and in the context of your situation in a first consultation as follows:

Since you are no longer employed and instead receive a pension due to incapacity to work, your husband will be classified in tax class III. Your income tax class will then need to be changed to V.

According to § 46 Abs. 2 Nr. 1 EStG, an income tax return must be submitted if, in addition to taxable employment income, there are positive other income exceeding the amount of €410. This is likely to be the case due to the receipt of the EU pension, requiring an income tax return to be filed.

An EU pension from the statutory pension insurance scheme, starting in 2007, is subject to income tax with a tax share of 54%. For example, if the pension amounts to 12,000 euros per year, 54% of 12,000 = 6,480 will be subject to income tax as pension income.

Whether a joint assessment or separate assessment is to be carried out must be checked BEFORE submitting the income tax return.

I hope I was able to assist you.

Best regards,

Ulrich Stiller
Tax advisor/Diploma in Business Administration