The pensions are to 1. July increases. More and more seniors will be asked from the IRS to the checkout.
pensions in Germany to rise to 1. July 2020. Good news. But who must now pay taxes? What you should know about.
pensions in Germany to rise to 1. July 2020* in West Germany, 3,45 per cent, and in the new countries of 4.20 percent. A good news for around 21 million pensioners. This means at the same time, however, that more and more pensioners are obliged to file a tax return* how ntv.de reports – finally, this is always the case if the taxable income in excess of the annual exemption amount.
Future pension increases must be fully taxed
last year, around five million retiree liable to tax, according to the news portal. The tendency is rising. In the report it is stated: “it Was 14 years ago, half of the time-related pension is tax-free, subject to the year 2020, 80 per cent of the pensions of the tax liability .” For every year, the percentage of the taxable portion of the pension increases for each of the new pensioners by two percentage points. After that, he will increase for new retirees in each case by only a percentage point. All pensions commencing in 2040 or later, be then subject to the tax to 100 percent, writes ntv.de.
The good news is that the pension remaining free amount in subsequent years unchanged. The Senior, referred to since the 2005 retirement, remained so also in the year 2020, 50 percent of the pension payment of the 2005 tax-free.
also read : Here are a pensioner living in Germany at the cheapest.
tax Declaration: retirees can use to control
What you should know: The amount refers to the specific amount of money, and not on a proportion of their pension, as it is called further in the report. Future pension increases would have to be fully taxed. The background for the dynamic pension taxation the changeover of the taxation on the downstream System. “That is to say, during the working life, the contributions to the pension tax can be deducted in the payout phase, the annuity must be taxed”. ntv.de writes. “At least one income tax return will then be due when the total amount of income of a retiree amount exceeds, respectively, for the corresponding year is valid reason to be free.” This could then also affect long-term existing pensioners. For 2020, this for stand-Alone deck at 9.408 Euro and for the spouse of the double value applies.
Good to know: Even pensioners can deduct some of the cost of the tax. Click here to read more.
Also interesting: How much will it cost, if you go early in retirement – can you afford it?
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