Pension taxation
October 6, 2011 | 50,00 EUR | answered by Dr. Yanqiong Bolik
1. My wife is a civil servant, will turn 62 years old in October 2011, and plans to retire in approximately 1.5 years (May 2013). She will then receive a monthly pension of around 2,500 euros. The question is how much tax she will have to pay on her pension.
2. I am an employee in the public sector and I am now 64 years old in October. I am currently in partial retirement. From 65 (November 2012) I will receive pension income (DR=1,900, VBL=840, VBLextra=130) of approximately 2,900 euros. Again, the question is how much tax will be due on the pension.
Additional information: I have already used the factor method 2011 at the Federal Ministry of Finance (BMF) and selected my wife (retired civil servant) and myself as "beneficiaries" in the employment relationship.
As a finer point, it should be noted that my share of taxable pension income in 2012 will be 2% higher than in the hypothetical calculation for 2011.
I am still unsure about how the "pension exemption amount" will be factored into the tax calculation for my wife as a civil servant.
Dear inquirer,
Thank you for your inquiry, which I will gladly answer taking into account your contribution and the rules of this platform.
Please note that my explanation is based on the facts presented, and that adding, omitting, changing information, or the ambiguity of information can change the tax result.
- Your wife will receive pension benefits from the basic provision with an annual amount of 30,000 EUR starting in 2013. The taxable portion is 66%, so from 2014 the taxable amount will be 19,800 EUR.
- You will receive pension benefits from the basic provision starting in 2012 with an annual amount of 22,800 EUR. The taxable portion is 64%. Of this, 14,592 EUR is taxable and 8,208 EUR is tax-free. In addition, you will also receive pensions from supplementary provision with an annual amount of approximately 11,640 EUR. The earnings portion is 18%, so 2,095.2 EUR is taxable. For you, the taxable amount from 2013 will be 16,687.2 EUR.
The exact amount of income tax that will be assessed cannot be predicted at this time. It depends on factors such as your deductible expenses / extraordinary burdens. It also depends on whether there will be any legal changes. The tax calculator at the Federal Ministry of Finance is currently intended for estimating income tax until 2011. Unfortunately, it will not provide you with reliable information on your tax burden in retirement.
I hope I could help you get an overview.
If there are still uncertainties, please feel free to use the follow-up function.
Best regards,
Dr. Yanqiong Bolik
Tax consultant
Bildstöckle 6, 70567 Stuttgart
Tel: +49 (0)711 / 9332 2657
Email: info@zdbz.de
www.steuerberatung.zdbz.de
