Ask a tax advisor on the topic of Tax return

Enter disability pension in tax return.

May 4, 2021 | 60,00 EUR | answered by Steuerberater Knut Christiansen

Hello,

last year I was dismissed due to incapacity for service and the previously agreed incapacity pension was paid to me as a lump sum.

The lump sum I received amounts to 30,240€ and includes the payment of an incapacity pension over two years. Beyond this period, I could receive further benefits if there were a "condition-related occupational disability" (which is not the case). Unfortunately, I am not clear on whether the lump sum payment or the possibly limited benefits over two years will affect the taxation.

I would like to know how to enter the incapacity pension/lump sum in my income tax return. Please provide me with the information on which form and which line I need to enter which information.

I was born on December 30, 1995, and the incapacity pension could be paid out until February 1, 2050.

Attached are various documents that may be relevant:
- Confirmation of payment from the insurance company
- Proof of insurance duration for occupational disability
- General tariff information
- Tax regulations (according to the insurance company)
- Product information with breakdown of contributions
- Payslip with contribution payments

Thank you in advance.

Best regards,

Steuerberater Knut Christiansen

Good day and thank you for using ask-a-pro.com!

The pension is to be taxed as a (abbreviated) annuity with a profit share of 50% according to § 22 EStG. Since the pension amount is paid to you in a calendar year, it is also to be recorded for tax purposes in that year. This is not a lump sum payment of a pension, but rather a consolidated payment of the pension for 2 years.

You should enter the pension amount on attachment R in line 13 et seq. The tax office will generally receive this information from the pension insurance based on your tax ID. If you mistakenly enter the amounts incorrectly, the tax office will still correctly take them into account based on the information provided by the insurance.

I hope this answers your question, if not feel free to ask further questions at no cost.

I would like to point out that this forum cannot replace a detailed and personal tax consultation, but is primarily intended to provide an initial tax assessment. By adding or omitting relevant information, the legal assessment of your concerns could be different.

Best regards

Knut Christiansen
Tax advisor