Online message – Wednesday 07/12/2023
Basic pension supplement | Error in data transmission to the tax offices (BVL)
The 2021 and 2022 tax assessment will come as a surprise to many pensioners who receive a basic pension surcharge because of their low pension. The tax office calculates taxes on the supplement to the statutory pension, although the basic pension supplement is tax-free retrospectively from January 1st, 2021. This is reported by the Bundesverband Lohnsteuerhilfevereine eV (BVL).
Background of the above problem: The German pension insurance could not report the electronic data to the tax office correctly at the beginning of this year because the Tax exemption only decided at the end of last year with the JStG 2022 became. Although the pension insurance will correct the incorrectly transmitted data, it will initially put a strain on the household budget of the people who have little pension anyway.
The BVL explains further on this, among other things:
The BVL has requested clarification from the BMF at short notice to ensure that those affected do not suffer any disadvantages, including with regard to other social benefits, such as housing benefit.
According to BMAS
around 1.1 million people receive the basic pension supplement to their statutory pension. Those who have been insured for many years, who have worked, earned little, raised children, cared for relatives and paid pension contributions regularly, are to receive a pension that secures their livelihood through the surcharge. The German pension insurance determines who is entitled to it. An application is not required.
Anyone who received the basic pension supplement in 2021 and/or 2022 should check whether the reported pension amount (gross annual pension) incorrectly includes the basic pension supplement paid. The pension notification is correct if the tax-free surcharge is shown separately. The BVL recommends providing additional information in the tax return and pointing out that the basic pension surcharges are not taxable.
In any case, the pension insurance is obliged to correct the incorrectly transmitted data and report it again electronically. The tax office then has to change the wrong tax assessment and refund the overpaid taxes.
An objection to the tax assessment is not necessary. As soon as the tax office has the corrected data, it will correct the wrong tax assessment according to § 175b AO.
Those: Federal Association of Income Tax Assistance Associations,
press release v. 12.7.2023 (il)