The average Social Security pension in the system amounts to 1,252 euros. A level of income that requires submitting the income tax return if the taxpayer has more than one payer and has received from the second and remaining payers an amount greater than 1,500 euros per year. But in the case of those who receive a benefit equal to or less than 22,000 euros, they will be exempt from carrying out this procedure. However, there are exemptions and deductions that can benefit you if you have to pay bills with the treasury.
One of the doubts that often plagues recently retired people is whether they are required to file their income tax return. “The public retirement pension is subject to the Personal Income Tax (IRPF) and is included in the annual declaration of this tax as income from work, just like the benefits derived from pension plans and other systems. of social security,” clarifies Carmen Ferrer, tax advisor and partner at Ros Petit.
However, if the pension does not exceed 22,000 euros, the taxpayer will be exempt from submitting the declaration. On the other hand, there is an obligation to complete the procedure if income of more than 15,000 euros is received from more than one payer and the amount received from the second and remaining payers exceeds 1,500 euros. This can easily occur if the pensioner obtains, in addition to a public pension, another benefit from a private pension plan.
Likewise, it must be taken into account that certain pensions are exempt from tax. This is the case of pensions for permanent absolute disability or severe disability, pensions in favor of family members due to absolute disability of the holder, as well as orphan’s pensions and those derived from acts of terrorism.
Following several rulings by the Supreme Court, a transitional provision has been included in the personal income tax law that allows taxpayers who receive a retirement or disability pension to reduce the amount to be taxed as income from work as long as they have made contributions to mutual societies. labor that could not be deducted at the time. “That is, they have the right, on the one hand, to a refund of the excess tax paid during the years that have not expired – starting in 2019 – and, on the other hand, to have said tax reduction applied in the next declarations,” he elucidates. Ferrer.
This is, therefore, one of the main novelties of the current income and assets campaign. The Union of Technicians of the Ministry of Finance (Gestha) expects that 4.8 million mutual pensioners can benefit from the reduction. In order to apply it, “it is necessary to have made contributions to mutual societies on a date prior to January 1, 1999,” says the tax advisor, as long as at the time these contributions could not have been subject to a reduction or reduction in the tax base. of the tax.
Certain capital gains are exempt from taxation for taxpayers who are 65 years of age or older. One of the most important exemptions is the one that affects the transfer of the habitual residence, which also applies if only the bare ownership is transferred and the usufruct is reserved. The same occurs with the transfer of other assets, although in this case the amount obtained, up to a maximum of 240,000 euros, must be used within six months to constitute an insured life annuity in your favor. Neither are amounts obtained through taking out a reverse mortgage on a primary residence taxed in personal income tax, nor are financial aid granted by public institutions to finance stays in residences or day centers.
In addition, many pensioners will be able to take advantage of specific tax benefits for people over 65 years of age. Among them, the increase in the amount of the taxpayer’s state minimum stands out – the part of the income that is calculated to be used to satisfy basic needs -, which from the age of 65 goes from 5,500 to 6,650 euros, and up to 8,050 euros. from 75 years old. Those who live, at least half of the year, with an ascendant with a degree of disability equal to or greater than 33% and meet certain requirements will also have the right to apply an amount greater than the taxpayer’s minimum.
Likewise, people with a degree of disability of 33% or higher will have the right to apply a higher minimum taxpayer in their declaration, as can be seen in the following table:
It must be taken into account, Gestha indicates, that there are other amounts of the personal, family and disability minimum approved by the autonomous communities of Andalusia, the Balearic Islands, Castilla y León, Galicia, Madrid and the Valencian Community. And we must not overlook the numerous specific regional deductions for older people in Andalusia, Aragon, Principality of Asturias, Canary Islands, Cantabria, Castilla-La Mancha, Castilla y León, Catalunya, Galicia, Madrid. Region of Murcia, La Rioja, Valencian Community and the Balearic Islands. Deductions that can be consulted through this link.
It is also worth mentioning the state deduction of 1,200 euros per year from which, according to the Technical Union of the Ministry of Finance, taxpayers with dependent ascendants with a disability equal to or greater than 33% can benefit, provided they generate the right to apply the minimum per ascendant. In this case, the taxpayer may request advance payment of the deduction (100 euros per month), which is charged by transfer to the account indicated in the application.
Finally, another deduction with the option of advance payment – ??of 100 euros per month – to which pensioners with spouses with a disability equal to or greater than 33% with income equal to or less than 8,000 euros who and not are entitled, although not exclusively. generate the right to apply the previous deduction.