The most important expenses that pensioners can deduct in the Income Statement

On April 11, the Income and Wealth campaign for the 2022 financial year began. From this day until June 30, taxpayers who have the obligation to file the return may do so electronically at the electronic headquarters of the Tax Agency, available at this link. Likewise, the telephone processing began on May 5, while those who wish to prepare the draft in person must wait until June 1.

In the case of people who receive a pension, do they have the obligation to make the declaration? What expenses can be deducted? Article 7 of the General Income Tax Law includes the regulations on tax exemptions, even if the established limits are exceeded. Contributory pensions, such as the retirement pension, are considered as income from work, so they will be one more payer for the Treasury.

More interesting deductions in 2023

In this sense, pensioners who do have the obligation to submit the annual income tax return should know which are the most relevant expenses that can be deducted to save on this tax.. One of the most frequent deductions is that of the pension plan, although the individual contribution limit has been reduced for the second consecutive year.

As detailed by the Organization of Consumers and Users (OCU), this limit is reduced from 2,000 to 1,500 euros, “provided that the total contributions do not exceed 30% of the net income from work and professional activities,” he points out.. And where should it be added in the declaration? The boxes corresponding to the pension plans in the draft of the declaration go from 462 to 476, framed in the section “Reductions for contributions and contributions to social security systems”, within the section 'Reductions of the tax base'.

Retirees who receive a contributory pension may also deduct the mortgage for the purchase of a home, provided they meet certain requirements. Thus, the main condition is to have signed the loan with a bank before January 2013. The maximum applicable deduction is 15%.

Another of the usual deductions is the rent. Pensioners who are tenants of a home may deduct the rent in the state and regional section. However, one of the requirements for the state deduction is to have signed the contract before January 1, 2015.