Tax Returns in the Simplifications for You

What is a simplified tax return for employees? Filing a voluntary retroactive tax return for employees can save money. A voluntary, retrospective tax return for employees can save money. Under certain conditions, an employee can submit a simplified tax return to the tax office instead of a normal tax return.

The Aspects of Possibilities

  • However, this is only possible if you have only received wages (including pension payments) and only want to deduct the advertising costs, special expenses and extraordinary expenses specified in the form.
  • A married couple can only submit their tax returns this variant, when a joint assessment have applied.

The Retirement Income Act, which has been in force since January 1, 2005, is likely to cause headaches for one or the other pensioner: 

The central question is “Does a pensioner has to file a tax return?”

The law states that pensions from statutory pension schemes are now subject to downstream taxation. The amount of taxes depends largely on the retirement age.

In this guide, we explain when a tax return for pensioners is due, what allowance they benefit and whether additional income has to be taxed. Go for the online tax preparation here now.

Is there an income tax return for retirees?

Basically it can be said that some pensioners also have to submit an income tax return to the tax office. Whether a tax return has to be submitted depends on the amount of the pension, the retirement age and ultimately whether the basic tax-free amount is exceeded.

  • Those who retired in 2005 or earlier have to pay 50% tax
  • from 2006 onwards , 52%  is taxable
  • from 2007 are 54%  taxable
  • from 2010  tax will be charged at 60%
  • from 2014 are 68%  taxable
  • from 2015 it is 70%
  • from 2016 72%

It is planned that from 2040 everyone will have to tax their pension 100% 

For example, if you retired in 2014, you will have to pay tax on 68 percent of your pension. Accordingly, you are left with 32 percent tax-free. This percentage is called the pension allowance. This exemption is given less and less attention year after year as it is getting smaller and smaller the pensions are therefore taxed more and more.

When do retirees have to file a tax return?

Pensioners and tax returns: We answer all your questions here

Is there a general tax declaration requirement for pensioners? If you stay below the basic allowance with your income and your pension, you do not have to file a tax return. This is the year 2017 at 8,820 euros for a single person and 17,604 euros for retired couples.

If the tax office requests a tax return for pensioners, you must comply with this requirement, regardless of whether you are above or below the basic tax allowance. If you ignore the letter, the tax office will estimate your income and the taxes to be paid. There is then a risk of a back tax payment.