In a short time, most Spaniards will face the Tax Office to complete their Income Statement. This annual procedure must be followed by all residents in the country. It is a step that helps keep financial status up to date with public records.
The amount owed is calculated in the income statement, and payments made in advance during the year are subtracted from this total.
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As with all taxpayers, retirees aged 65 and over can also benefit from deductions that help reduce the tax bill and facilitate the submission of documents to the tax authorities.
Expenses retirees can deduct
Anyone over 65 with an income exceeding 22,000 euros in 2022 must file the declaration and may include certain deductions, such as contributions to retirement plans, as defined by the Department of Finance.
A retired couple resting on the beach is a common image associated with this demographic, underscoring the real-life impact of these rules.
The income statement also allows for tax relief when buying a home or paying rent, though these deductions apply only in autonomous communities that offer housing discounts.
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Another deductible element is union dues, provided specific requirements are met and documented in the income statement.
A retired couple stands side by side, a reminder of the shared experience many face in retirement.
Contributions to nonprofit organizations are also deductible in the income statement. Though these amounts may seem small, the total can meaningfully reduce the payment to the Tax Office.
Extra pension funds to address practical needs
It is important to recognize situations that require a tax declaration could be overlooked. For example, lending money to a family member during the tax year may trigger tax considerations. In such cases, consulting guidance on property transfer tax is advisable, as noted by the Digital Economy sources.
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On the other hand, transfers by donation and other non-taxable transactions for those aged 65 and over may have specific implications for the donor and recipient. The Tax Office provides several tools to simplify filing returns for taxpayers over 65, including online filing via the official website or the Tax Office mobile app.
A retired couple.