How can I optimize my income tax return as a retiree?
June 16, 2023 | 40,00 EUR | answered by Tatiana Herrmann
Dear Tax Advisor,
My name is Ammelie Blumberg and I am a retiree. For many years, I have been filling out my income tax return myself, but lately I have the feeling that I am not fully maximizing all opportunities to optimize my tax return. In addition to my pension, I also receive income from rental and leasing as well as capital gains. My wish is to minimize my tax burden as much as possible and take full advantage of any tax benefits.
I wonder if there are certain expenses or deductions that I can claim in my tax return to reduce my tax burden. Furthermore, I am unsure if I have filled out all the relevant forms correctly and if I might even be eligible for certain tax reliefs or reductions that I was not aware of.
Since I do not have a good understanding of tax matters, I urgently need your help to optimize my income tax return. Can you give me tips on how to best optimize my tax return as a retiree? Are there specific regulations or special considerations that I should be aware of? What documents and receipts do you need from me to efficiently review the tax return?
I thank you in advance for your assistance and look forward to hearing from you.
Sincerely,
Ammelie Blumberg
Dear Mrs. Blumberg,
Thank you for your inquiry and your trust in my expertise as a tax advisor. It is understandable that you may feel uncertain when it comes to optimizing your income tax return, especially if you have various sources of income such as pensions, rental income, and capital gains. I would like to offer you some tips on how to optimize your tax burden as a retiree.
First and foremost, it is important to know that pensions are generally subject to taxation. However, there are certain allowances and tax reliefs available to retirees that you can take advantage of. For example, health and long-term care insurance contributions as well as pension provisions can be claimed as special expenses to reduce your tax burden. Additionally, any work-related expenses related to your rental income can be claimed to reduce your taxes.
Furthermore, there are specific rules for retirees, such as the so-called age relief amount or the tax deduction for household services. The "Anlage Vorsorgeaufwand" (retirement provisions form) and the "Anlage KAP" (capital income form) should also be filled out carefully to not miss out on potential tax benefits.
In order to efficiently review your tax return, I will need all relevant documents and receipts from you, such as your pension notices, rental agreements, receipts for work-related expenses, certificates for capital gains, and all documents related to special expenses. The more complete your documents are, the better I can analyze your tax situation and work out potential tax benefits for you.
I am happy to assist you in optimizing your income tax return together and to support you with any tax-related questions. Please do not hesitate to contact me if you need further assistance or have any questions.
Best regards,
Tatiana Herrmann, Tax Advisor
