2023-05-20 15:01:48
The deadline for submitting your 2023 tax return is approaching. This administrative formality concerns half of the households in France, including retirees. If you receive a retirement pension, you must declare it, because it is considered taxable income, regardless of your pension plan or the form of the payments you receive. Since January 1, 2019, retirement pensions are subject to withholding tax, which means that the amount you receive corresponds to an amount net of withholding tax.
retirement taxes
To calculate your taxes, the tax authorities will take into account your income and the number of dependents. Retirement pensions are subject to social security contributions and a general social contribution (CSG).
To avoid paying taxes, your income in 2022 must be less than 11,431 euros for a single person (1 tax share) or 17,535 euros for a couple (2 tax shares). If you are over 65 or are disabled and your overall net income allows it, you can benefit from a tax reduction for the year 2023.
This reduction has been increased to 5.4%. Some taxpayers who were excluded until now may therefore be entitled to it.
What is the ceiling for not paying taxes in 2023?
In 2022, if you are single, here are the Reference Tax Income (RFR) thresholds and tax rates:
- No taxes if your RFR is less than 11,431 euros
- 3.80% tax if your RFR is between 11,431 and 14,944 euros
- 6.60% tax if your RFR is between 14,944 and 23,193 euros
- 8.30% tax if your RFR is greater than 23,193 euros
If you are a couple, here are the Reference Tax Income (RFR) thresholds and tax rates:
- No taxes if your RFR is less than 17,535 euros
- 3.80% tax if your RFR is between 17,535 and 22,924 euros
- 6.60% tax if your RFR is between 22,924 and 35,575 euros
- 8.30% tax if your RFR is greater than 35,575 euros
Will the new reform affect retirement pensions?
The following amounts are tax exempt and do not need to be reported:
- The personalized autonomy allowance
- L’solidarity allowance for the elderly (ASPA), the supplementary disability allowance (ASI), and the minimum old-age allowances
- Certain military pensions, war pensions and similar, in particular the retirement of the combatant
- Mutual pension for veterans
- The specific long-term care benefit
- The increase for assistance from a third party
- Temporary orphan’s pensions: disability pensions for the child, the fraction of the pension corresponding to the amount of family benefits to which the deceased parent would have been entitled, the part of the pension which replaces the allowance for disabled adults, etc.
Report the following amounts:
- Amounts paid by basic and supplementary pension schemes, special schemes or the State;
- Retirement benefits paid in the form of capital;
- Family allowances ;
- War campaign bonuses (increase in the pension granted to veterans);
- Additional allowances paid by pension schemes (e.g. education allowances, death grants, etc.);
- Allowances paid to certain veterans;
- Widowhood allowances;
- Life annuities paid under a popular retirement savings plan (PERP), the PREFON scheme or a Madelin contract or a compulsory supplementary company pension scheme (Article 83), as well as annuities from a mandatory retirement savings plan (PERO), an individual retirement savings plan (PERIN) or a collective company retirement savings plan (PERECO), other than those corresponding to waived profit-sharing or voluntary participation payments;
- Life annuities received free of charge by virtue of a gift or bequest.
You must report pensions and retirement benefits for dependents or connected persons yourself, as this income is never pre-filled. Since January 1, 2019 and the introduction of withholding tax, retirement pensions are subject to withholding tax. The amount you receive is therefore a net amount following deduction at source.
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