Enter your tax return correctly in the case of partial retirement
With partial retirement, the employee should slowly be introduced to his third phase of life with the transition to well-deserved retirement. But if you don't really know your way around, you are faced with a puzzle when filing your tax return.
A tax return must be made
- If you are older than 55, you also think of your own in a certain way pension. So that he can try this out, he will be able to partially withdraw from working life through a payment from the Federal Agency made palatable for work, because he is partially making his previous job available to a previously unemployed person Disposal. In return, the employee receives a wage replacement benefit plus the wages for the job he has now completed.
- This partial retirement can be granted for a maximum of six years, whereby the employee can choose in advance whether he would like to fill in the first half with part-time work in order to receive his remuneration after another three years without work to the Retirement to obtain. The working time is exactly 50% during the first three years, but the wages for his work must still be taxed.
- If the employee then quits his work three years before retirement, he will receive 90% of his previous earnings tax-free. However, the progression proviso means that the normally tax-free amounts are included in the determination of the taxable amount. As a result, the employee often has to pay additional taxes.
In the case of partial retirement, the employee receives tax-free payments
- Even if the employee has so far failed to file a tax return, he must start part-time working for older employees fill out an income tax return, otherwise it will be taxed at a flat rate, which means the additional demand of the tax office is considerable elevated. The progression proviso then no longer plays a role.
- In the first three years of his partial retirement, the employee must make all the payments in addition to his receives actual wages as a wage replacement benefit in column 25 of Appendix N of the income tax return enter. He enters the wages he received during partial retirement in lines 6 to 9 of Appendix N. If, after three years, the employee only receives his pay, he has to pay all pay in enter column 25 of Appendix N, as the proportionate wages will then be paid to him tax-free will.
Minor Employment in Tax Return - Carry Out Entry Correctly
If the normal income is sometimes insufficient, in many cases a ...
How helpful do you find this article?
