Field help: (2024) actually paid

Compensation payments to avoid the adjustment of pension rights can be deducted as special expenses in the year of payment if the donor applies for it with the consent of the beneficiary and the beneficiary lives in Germany.

No longer does it make any difference whether the compensation relates to civil servants' pensions, public, private, subsidised or company pension schemes. Payments are only deductible as special expenses.

The beneficiary must pay tax on the compensation payments as other income (form SO). The application is only valid for a whole calendar year and cannot be withdrawn. The consent is effective as long as the recipient does not revoke it. For the application, please use form U. The Form U (Anlage U) must always be signed by the giver (you) and the recipient of the compensation.