For pensioners to receive tax-free EUR 600, these essential requirements must be fulfilled

Celebrating a significant milestone, turning 65 last year, marks a new phase in life for many individuals in Germany. But for those with additional income, there's more to consider, such as the Age Relief Allowance.

The Age Relief Allowance is a tax benefit available to taxpayers over 65 with additional income. This allowance, as explained by the wealth centre VZ online, can provide some financial relief, especially in the face of retirement. However, the exact age exemption limit for a pensioner born in Germany varies depending on the specific pension regulations related to the year of birth and the pension scheme applied.

If you turned 65 in 2024, for instance, you can expect an Age Relief Allowance of 13.2% of your additional income from 2025. This allowance decreases by 0.4 percentage points each year, with it being 0 percent by 2058 and subsequently abolished, as per the Federal Ministry of Finance.

To be eligible for the Age Relief Allowance, three conditions must be met, according to Finanztip. Firstly, the individual's total income must be positive. Secondly, the individual must be a taxable pensioner, meaning they receive taxable additional income in addition to their statutory pension. Lastly, the source of this additional income can come from various sources such as wages, rental or lease income, income from capital like stocks, Riester pensions, or income from self-employment.

It's important to note that the amount of the Age Relief Allowance depends on the year of birth, and the details of the conditions for eligibility are not provided in the given paragraph. The Age Relief Allowance cannot exceed 627 euros.

The Age Relief Allowance is automatically taken into account in the payslip for employees, and for others, it is granted by the tax office. This financial aid is especially relevant in a society where the fear of not having enough money to live on in old age is pervasive. According to the Federal Ministry of Labour, one in four retirees receive less than 1,300 euros in pension after 45 years.

In light of this, more and more people are continuing to work even after the regular retirement age in Germany, with around one in five 65 to 69-year-olds doing so in 2024. This trend suggests a growing need for financial support mechanisms like the Age Relief Allowance.

In conclusion, the Age Relief Allowance serves as a valuable resource for pensioners in Germany with additional income. However, the specifics of its application and eligibility criteria can vary, making it essential for individuals to consult relevant sources for accurate information.

For pensioners to receive tax-free EUR 600, these essential requirements must be fulfilled