Pension receipt certificates for 2023: Important information for pensioners

Pension receipt certificates for 2023: Important information for pensioners

According to a report by www.infranken.de,

Pensioners will receive their pension receipt certificates for 2023 in the first two months of the year. This contains important information about the pension paid out as well as the health and nursing care insurance contributions for the past year. This certificate must be applied for by the pensioners themselves via the online services website of the German Pension Insurance (DRV). Only then will the certificate be automatically sent annually. In addition, at the beginning of the year until the end of February, employees receive information about their pension in the so-called annual report, which is a copy of the information that the employer has passed on to the pension insurance company.

The basic allowance, which indicates the amount up to which taxable income does not have to be taxed, was 10,908 euros for single people and 21,816 euros for married couples last year. Pensioners must submit a tax return if their taxable income exceeds the basic allowance. The pension insurance makes this process easier by forwarding the required information directly to the responsible tax office. This means that appendices “R” and “Precautionary expenses” no longer need to be filled out. The certificate explains which information must be provided where in the tax return and gives all pensioners the opportunity to know the result of their tax return in advance.

Currently in Germany, taxes must first be paid on the insurance contributions and then also on the pension, which can lead to double taxation in some cases. However, the government is planning measures to end double taxation, but these are currently on hold. Pensioners could benefit if these plans are implemented.

It is important that pensioners and employees check this information carefully, as incorrect information about salary and length of employment can have a negative impact on pension rights and tax matters. It is therefore advisable to have any errors corrected with your employer.

Overall, this information can lead to better planning of the tax situation and pension amount. It is important that pensioners are informed about their rights and tax obligations in order to avoid financial disadvantages. The government's planned measures to end double taxation could also lead to relief for pensioners.