Reduction in advance deduction
November 22, 2011 | 40,00 EUR | answered by Dipl.BW/SB Ulrich Stiller
Hello,
Since 2003, I have been receiving a so-called pension benefit from my former employer, which is paid out monthly and fully taxed. (Termination of the employment relationship by mutual agreement, early retirement, unemployed without benefits). I receive this benefit until the age of 60. Contributions to the statutory pension insurance have not been made since my departure. In the annual electronic income tax certificate, entries have been made in fields 3, 4, and 5, nothing else. I pay my health insurance contributions myself from this fully taxed income. The tax office deducts the preliminary deduction according to §10 (3) No. 2 EStG. Is that correct?
Dear Seeker,
Thank you for your inquiry, which I would like to answer based on the information you provided and in the context of your situation within the scope of an initial consultation as follows:
Based on your description, I assume that you receive pension benefits from your former employer.
A reduction of the preliminary deduction is made in the following cases:
a) Income from employment according to § 19 EStG without pension benefits according to § 19 para. 2 EStG
OR
b) if you belong to the group of persons specified in § 10 c para. 3 no. 1 or 2 EStG.
The conditions for b) are only met if you can claim a free lifelong provision or have acquired a pension entitlement without contribution payments.
Since I am unable to confirm the conditions for b), only the statement under a) applies.
You receive pension benefits, for which no reduction of the preliminary deduction is applicable. Therefore, a reduction of the preliminary deduction by the tax office would not be justified.
Therefore, you must lodge an objection against the income tax assessment within the one-month deadline.
I hope I could be of assistance.
Sincerely,
Ulrich Stiller
Tax consultant / Diplom-Betriebswirt
