Side job as a retiree
March 14, 2012 | 20,00 EUR | answered by RAin/StBin Henriette Regulla-Schiessl
Hello dear tax advisor,
I am 65 years old today and have been retired since 2010. My gross pension is approximately 25,500 euros per year (VBL pension about 21,400 euros and company pension 4,100 euros). My husband is a civil servant and receives annual (gross) pension benefits of 18,000 euros. We file our taxes jointly.
I have been offered a part-time job where I would earn an additional 6,500 euros per year in addition to my pension. Would this be worth it at all, or would the tax progression have a negative impact on our total income?
Best regards
Guni Nyberg
Dear questioner,
Thank you for your inquiry, which I am happy to answer in consideration of your effort and the rules of this platform as part of an initial consultation. The response will be based on the information you provided. Adding, omitting, or changing details, ambiguities, or errors in the information provided can affect the tax outcome.
In answering, I assume that since reaching the age of 65, you have been receiving the VbL pension and company pension. The income from the VbL pension is considered other income according to § 22 EStG, as well as the company pension. Both are taxable at the income portion rate. Your husband's pension income is considered income from non-self-employment.
With the receipt of the old-age pension, there are no longer any income limits for you. I assume that the additional earnings are on the income tax card.
Taking into account your effort, I will now calculate the tax comparison for you with and without additional earnings.
Tax burden without additional earnings:
VbL pension 21,400 income portion 60% EUR 12,840
Company pension 4,100 income portion 60% EUR 2,460
Husband's pension EUR 18,000
Total EUR 33,300
Results in a tax amount according to the splitting tariff: EUR 3,662
without age relief amount
without special expenses
without extraordinary burden
VbL pension 21,400 income portion 60% EUR 12,840
Company pension 4,100 income portion 60% EUR 2,460
Husband's pension EUR 18,000
Additional earnings EUR 6,500
Total EUR 39,800
Results in a tax amount according to the splitting tariff: EUR 5,358
without age relief amount
without special expenses
without extraordinary burden
I hope this information has been helpful to you.
Best regards,
Henriette Regulla
Lawyer/ Tax advisor/ Tax consultant
