Ask a tax advisor on the topic of Income tax return

Taxation of the 20% occupational disability pension

November 25, 2010 | 40,00 EUR | answered by Dipl.BW/SB Ulrich Stiller

Hello,

I have been receiving a disability pension from the employers' liability insurance association since December 2008 (20% disability), as I had a car accident during working hours 15 years ago. How do I have to tax these payments, or are they tax-free? I have read and received various statements.

Best regards

Dipl.BW/SB Ulrich Stiller

Dear client,

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

The pension from the professional association is a pension from a statutory accident insurance. Such pensions are tax-free according to § 3 No. 1a EStG. They also do not need to be reported under the progression clause according to § 32b EStG. Also, due to the new regulations on the taxation of pensions from 2005, the tax exemption remains in place.

Result:

You do NOT have to report this pension in your income tax return.

I hope this information has been helpful.

Sincerely,

Ulrich Stiller
Tax consultant/Dipl. Business Administrator