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Increase in the basic allowance: pensioners with tax privileges
Hundreds of thousands of pensioners will benefit from tax relief and pension increases in 2024. Find out more about the developments and their effects. #Pensioners #Taxes #Pensionincrease #2024
Increase in the basic allowance: pensioners with tax privileges
The increase in the basic allowance in 2024 will have both positive and negative effects for pensioners in Germany. According to information from the Süddeutsche Zeitung and the Federal Ministry of Finance, around 244,000 pensioners will be exempt from tax liability as a result of this measure. As a result, the increase in the basic allowance relieves the burden on a significant number of pensioners. However, at the same time, 114,000 pensioners will also be subject to new taxes, as the planned pension increase in July will lead to an increase in their tax burden.
According to the Federal Ministry of Finance, a total of around 6.3 million people will remain in the “taxpayers with pension income” category in 2024. This illustrates the broad impact of the tax changes on pensioners in Germany. With a total of around 21 million pensioners in the country, the relevance of these tax regulations for a significant part of the population is evident.
The increase in the basic allowance was introduced as a means of compensating for inflation, which particularly affected pensioners in Germany. Many older people suffered from rising prices for food and other everyday goods. The basic allowance, which describes the annual income up to which no tax has to be paid, was increased to 11,604 euros at the turn of the year in order to relieve the burden on pensioners.
The Finance Minister Christian Lindner is aiming for an even greater increase in the basic tax allowance, retroactively from the given point in time. This plan is currently being discussed within the traffic light coalition. It remains to be seen to what extent further tax measures will affect pensioners in Germany in 2024. Overall, pension tax changes represent a significant policy discussion that will impact the lives of hundreds of thousands of retirees in the coming year.