With the next tax return you should not forget the contributions for your insurance and for the pension. If you enter all expenses in the right place, you can save with the health, care and pension insurance in any case taxes. Tax benefits are also available for savers with the Riester pension and Rürup pension.
Correct insurance premiums and pension expenses
It’s that time again: Until 31 May 2018 , the tax return 2017 must be available at the tax office. Although most taxpayers can get back a good deal of money in this way, the mere thought of the written explanation is a source of horror to many. But do not worry: just work through the many forms step by step . Here you can read about how to correctly state your insurance contributions and pension expenses in the 2017 tax return. In addition, you may be able to delay the levy . If you have a tax accountant, you do not have to file the tax return with the tax office until the end of the year.
Tax benefits with the pension
Information on the contributions for statutory and private pensions may not be missing in any tax return. The two most important forms you will need for income tax return are the “Pension Expenses” and the “AV” Annex .
Annex “Pension expenses”
In the “Pension Costs” appendix, you provide the tax office with all information about your pension expenses. In addition to the contributions to the statutory or private health and long-term care insurance , these are above all the contributions to old-age provision. In lines 4 to 7 you enter your contributions for the statutory pension insurance, the professional pension scheme and for the basic pension contract , the so-called Rürup pension . The concrete figures can be found in your employment tax statement and in the documents of the pension scheme or the Rürup provider.
The investment “AV” is important for all Riester savers , because this is the information on the pension contributions made for the Riester contracts. For how many Riester contracts you receive government funding , enter in line 7. In line 8, enter the amount of contributions made for these contracts. Also repayments for Wohnriester are among them. Furthermore, you indicate in the form whether you were directly or indirectly favored in the year 2017, and give information about your children for the Riester child allowances .
Tax benefits through the Riester pension
Meanwhile over 16 million Germans with a Riester contract provide for the age. All of them can benefit from state subsidies from allowances and tax benefits. In addition to the basic annual allowance of up to 154 euros (from 2018 175 euros) are especially the child allowances in the amount of up to 185 or 300 euros interesting.
The paid-in contributions for the subsidized pension as well as the allowances may be claimed by Riester savers as special expenses for the tax. The tax office recognizes up to 2,100 euros per year and automatically determines whether the Riester saver drives with the allowances or special deduction better. Depending on marital status, number of children and income taxpayers with a Riester contract in this way receive tax savings. In particular, single persons without a child benefit from the special deduction .
If you want to tax your Riester contributions together with state allowances, you must allow your provider to report the amount of paid contributions electronically to the tax authorities. For your income tax return, you must also fill in the attachment “AV”.
Tax benefits through the Rürup pension
Even Rürup savers can deduct their deposits from the tax. The deductible as special expenses maximum amount is at the Rürup pension this year 84 percent of 23,712 euros for single persons (20,392 euros) and 47,424 euros for married couples (40,784 euros). This maximum amount also applies to other precautionary expenses.
The contributions for the Rürup contract are entered in the tax declaration in line 7 of the Annex “Pension expenses”. Similar to the Riester pension applies here: The provider must also transmit the relevant data electronically to the tax authorities . Anyone who has not yet agreed to this as a Rürup-saver, can still catch up.
Specify additional pension expenses in the tax return
Expenses for other insurances, including occupational disability insurance , accident insurance, liability insurance and supplementary long-term care insurance , may also be entered in the “Pension expenses” appendix. This can be especially useful for retirees, retirees, childless self-employed, and lower income workers. Because if their contributions for the health and long-term care insurance are below the tax deductible maximum amount of 1,900 euros (for self-employed 2,800 euros) , they can deduct further insurance contributions.