The Best Tax Tips For Retirees: Outsmart The Tax Office With Income Tax For Retirees!

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Tax Return Tax Tips Pensioners

The Best Tax Tips For Retirees: Outsmart The Tax Office With Income Tax For Retirees! Although many retirees do not live in abundance financially, they often receive mail from the tax office. Often it is a request to file an income tax return. But that doesn’t mean that the bottom line is that a pensioner has to pay taxes. Here you will find three tax tips on which expenses you can deduct tax so that the tax return for pensioners does not end in fiasco.

Pensioners have the same tax rights as all other taxpayers. You can present the tax office with all reasonable expenses with which the tax burden can be reduced – ideally to zero. We have put some tax tips for you to use successfully reduce their taxes.

Tax Tip For Pensioners 1: Submit An Application For A Cheaper Test

Often pensioners are asked by the tax office to submit an income tax return because they have received investment income. The tax authorities then assume that pensioners with significant investment income also have additional income (e.g. rental income). That is a practical value that often applies. However, if a pensioner saved only ironically, he only had investment income in addition to the pension, including the withholding tax are subject to the obligation to submit an income tax return, often even a tax refund. To do this, as a pensioner, you only have to submit the KAP (the investment income) attach your files to the tax office with your tax return and tick “Cheaper check” there. If your tax rate is below 25 per cent (amount of the final withholding tax), you will automatically be reimbursed the difference to the final withholding tax.

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Tax Tip For Pensioners 2: List Medical Expenses

As you get older, your health expenses often increase too. And health insurance usually does not cover all costs. In such cases, however, you can at least share the costs with the tax office. You can list all the costs you have borne yourself for medical treatments, cures or medication and apply to the tax office for a deduction as an extraordinary burden in your income tax return. Although the tax office calculates a so-called “reasonable personal burden” depending on the amount of income, this is usually not too high for pensioners with often relatively small incomes. The remaining amount is tax-saving deductible in the tax return for pensioners.

Tax Tip For Pensioners 3: Have Disability Determined

If you have permanent health problems, for example, chronic ailments or disability, you can register an allowance. Suppose the tax office requests that income tax returns must be submitted for the past five years. In that case, the pensioner should be examined by the pension office and, if necessary, be assigned a degree of disability retrospectively. If the degree of disablement is between 25 and 100 per cent, pensioners will be given tax-deductible lump sums in their tax return.

TIP: Of course, retirees have many more ways to save to reduce their tax burden significantly. These savings options are stored in many tax software products available on the market, and the user is informed of the design options when filling out the relevant fields.

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