(2021) When will I receive the special expenses deduction?

In addition to the bonuses, the tax incentives for the Riester pension provide a financial benefit for investors. You can deduct not only your own contributions but the entire savings amount, including the government bonuses, up to the specified maximum limit as special expenses from your tax.

As part of the tax return, the tax office automatically checks whether the government bonuses or the special expenses deduction offer a greater advantage for the insured person. If the tax benefit is higher than the bonuses, the tax office refunds the difference. To claim contributions as special expenses in the tax return, you need the certificate from the Riester provider. You must also fill in the "Anlage AV".

Even if you have not yet received your provider's certificate, you should submit your income tax return. Generally, the tax office already has an electronic notification from the Riester provider, so the tax office can consider your Riester contributions.

Since 2008, a maximum of 2,100 Euro can be deducted as special expenses. The tax benefits are particularly worthwhile for high-earning savers.

You must claim the special expenses deduction in your income tax return for the year in which you paid contributions into the Riester contract. Not only your own contributions but also the Riester bonuses are eligible. The decisive factor here is always your bonus entitlement, not the actual bonus paid. Even if you do not apply for a bonus, the bonus entitlement can be deducted as special expenses and is added in the income tax assessment. It is therefore not possible to forgo the pension bonus and instead take the tax advantage for yourself. However, always remember to pay at least the minimum amount, including for a spouse who may only be indirectly eligible.

Please also note the following information: The provider of your pension contract transmits the pension contributions to be considered, including the contract data, identification number, and bonus or social security number, to the tax authorities via data transmission. As mentioned, you must submit the Anlage AV if you are applying for a special expenses deduction. By submitting the Anlage AV, the additional special expenses deduction is claimed for all (!) transmitted pension contributions.

If you do not wish to claim a special expenses deduction for all transmitted pension contracts, please do not submit the Anlage AV.

If you exceptionally have several pension contracts, it becomes really complicated, and you should note the following: 

• The pension bonus is only granted for two of these contracts.
• However, there is no such limit for the special expenses deduction.
• If you submit the Anlage AV, the special expenses deduction is granted for all transmitted pension contracts, more precisely, it is calculated and then capped.

If you do not want to claim the additional special expenses deduction for all contracts, please make the appropriate entries in the Anlage AV.

The advantage of waiving the special expenses deduction is that the later pension from this contract is not fully taxed but only at the more favourable income rate. In addition, the contributions can be deducted as other pension expenses within the maximum limits, provided there is still "leeway". For the slightly more favourable taxation later, however, no "Riester bonus" may have been granted for the affected contract.