Tax advice for senior citizens: how to get more out of your pension
As a lawyer with expertise in senior citizen’s law I often see that pensioners have to pinch pennies to get by. What many senior citizens don’t know: many everyday expenses can be claimed in a tax declaration. I have collected tax advice for senior citizens to show you a few options to save money. Let me advise you – as a lawyer with expertise in tax law I have the same rights as a tax consultant and can support you here.
Examine your tax benefits as a pensioner
In addition to the classic tax exemption limit there is a so-called proportional relief for elderly retired persons that allows further tax savings on existing income.
If you are older than 64 and still working, your monthly net income is simply said increased. The specific amount depends on your age and your total income, other than your legal pension or retirement pay. Here a tax declaration is worth it for senior citizens: your regular income is automatically credited, but other income should be declared in the tax declaration so you benefit from the relief there as well. In a tax consultation I can gladly show you how to use the proportional relief correctly.
Most important advice for senior citizens: many expenses are tax-deductible!
Many people don’t know that they pay a lot of expenses in their daily life that they can deduct from their taxes. These kinds of expenses are expanded at retirement age. Therefore, my most important tax advice for senior citizens: check and remember what everyday expenses you have and then discuss these expenses with a tax consultant or with me. In the following I want to show a few examples for expenses that you as a pensioner can deduct from your taxes.
Health expenses and care expenses
In senior age, costs for medical treatment, aids and medication accumulate. Especially expensive purchases such as dental prostheses or mobility aids in the home cut deeply into the purse – but especially such expenses can be deducted from your taxes if they count as “extraordinary burdens”. When the expenses count as medically necessary and surpass a specific amount in relation to your income, they can be claimed as extraordinary burden. As you likely have a relatively low income as a pensioner and as medical care is often necessary, it should be easy to justify these expenses to the tax office. The same way costs for care and stay in a care home can be deducted from your taxes if the criteria above are met. Please keep in mind however that not the entire costs are deducted. Simplified, it is examined what part you can pay yourself and the rest is deducted from your taxes.
Services close to home and repair work
In increasing age, you likely can’t take care of your home as well anymore and modernising measures become necessary. Services close to home like cleaning, gardening or janitorial services can be deducted up to 20% of their total cost up to a maximum of 4.000 EUR. The same goes for costs for modernising, renovating or repairs up to a total of 1.200 EUR. This includes investments like stair lifts or measures to make the place accessible.
Tax-exempt income for senior citizens
Just like regular taxpayers you as pensioner also benefit from tax exemption limits. When you rent out real estate for example and earn income through that, they can be tax-exempt if they fall under the tax exemption limit. Equally tax exempt is income from mini-jobs with a wage of up to 520 EUR monthly. Together with a tax consultant you can also look at what part of your pension (or other retirement arrangements) actually needs to be taxed.
Tax exemption limits for children and grandchildren
If you care for children and grandchildren at your retirement age, this can also be tax relevant. For example, if you care for grandchildren and pay for childcare, you can deduct these costs from your taxes. Support payments for your children (if necessary) can also be deducted.
My tax advice for you: consult someone!
As you see, there is some tax advice for senior citizens with broad application.
But the specific utilisation is very individual and has to be seen as a whole picture. Additionally, the local tax office has discretion for what tax benefits you can use in practice. Therefore, I suggest to get a tax consultation. An expert for tax law understands the complex connections and finds opportunities for you to keep more of your money.
If you come to me for a consultation, I will take my time and discuss your entire financial situation with you. With my experience in senior citizen’s law, I know the options that might apply to you specifically and can show you clear possibilities for savings in your tax declaration. Even complicated and unusual cases are no problem for me: for example, I also offer consultation if you wish to obtain a German pension from outside of Germany.
Please call me for a free initial assessment. I will gladly advise you however it suits you, whether in my office, online or on the phone.
I will gladly advise you!
Book an appointment for a free initial assessment or contact me by phone, e-mail or via my contact form:
Lawyer Christian Janssen from Berlin
Weitere Rechtsgebiete
Erbrecht
Gern übernehme ich auch die Testaments-Vollstreckung für Sie. Gerne berate ich Sie auch bei einer Schenkung und den steuerlichen Folgen im Rahmen der vorweggenommenen Erbfolge.
Sozialrecht
Gern erläutere ich Ihnen wie Sie die Kosten der Pflege zur Gestaltung der Übertragung Ihres Vermögens auf die nächste Generation einsetzen können.
