Retired Pays Income Tax? What Are The Rules?

Retiree pays income tax? More commentary at

It is time to give an account to the lion. The deadline ends on April 30, 2019 and doubts of all kinds are very common. Especially when we talk about retirees. For example, do you know if retiree pays income tax? Or if all income is exempt for those over 65? This is what we are going to answer and clarify to you, stay with us!

After all, retiree pays income tax?

Yes, like all pensioners, the retiree pays income tax and must make his annual declaration to the “Lion.”

What differs from the others are some rules that the retiree needs to know not to fall into the fine mesh. Let’s go to them:

Extract for Income Tax

Extract for Income Tax

Since we speak of retirement, a benefit of Social Security, the ideal to make a correct statement is to seek the INSS statement. Thus, it is avoided to omit income which, even if exempted, must be declared in IR.

To access the statement, just go to the Social Security website and complete with some information. What you are asking for is benefit number, date of birth, name of beneficiary and CPF.

There is also the possibility of requesting the extract personally in a Social Security agency. In case, take personal documents to remove the voucher, if the holder of the benefit.

Income tax exemption for retirees

Income tax exemption for retirees

For the retiree, it is necessary to declare the retirement benefit as a taxable income. Same as a normal salary. However, there is one exception: who receives up to R $ 1,903.98 monthly. And of course, being over 65 can declare retirement as an exempt income.

It is necessary that the income comes from a public retirement (such as the INSS), from a private entity or pension to be exempt. Those who receive a value above R $ 1,903.98, must declare the retirement as a taxable income.

With respect to the annual income, the amount of R $ 24,751.74 is considered as limit for exemption. It is considered, in this case, the added income of the 12 months plus the 13th salary. This, a benefit declared as exempt regardless of the situation. Again, those who exceed the amount of R $ 24,751.74, must declare the income as taxable.

Others who have the guaranteed exemption from Income Tax are the retirees due to disability. And also those with serious diseases.

In the condition of those who suffer a serious illness, it is necessary to submit an application in Social Security and take the document attesting the disease. Then a medical examination will be scheduled. Once the benefit is confirmed, the IR exemption will be assured.

Important: if the disease is confirmed before the application, the IRS can refund what has already been paid by the taxpayer, since the INSS counts the exemption from the date of the evaluation. For this, the taxpayer needs to apply for such an application.

At the time of the person receiving more than one benefit, such as retirement and death pension, the exemption will be appreciated only once.

What is not exempt in the Income Tax for retired

What is not exempt in the Income Tax for retired

Even those who are retired do not escape the rule of some taxable income common to all, such as rent, self-employment and normal salary. The retiree who keeps a job must, yes, declare that income as taxable.

Eventually, when a person begins to receive a pension on the death of a person who was retired due to invalidity, the exemption is not granted to the beneficiary.

Is dependent dependent also exempt?

The rule does not change for the retiree dependent on another taxpayer. That is: the declarant must respect the taxable income and income exempt from the retiree, as explained above.

Retired retiring FGTS

Retired retiring FGTS

The FGTS withdrawal, available monthly to the retiree who remains in employment after securing the benefit, is exempt from IR. No matter how the service is paid, whether monthly or total, the exemption is guaranteed.

Remembering: the retired who change jobs can not withdraw the FGTS, only in situations already known, such as dismissal or home financing.

Now that you know whether retired income tax payers and what rules are earmarked for it, learn how to calculate private pension and have a quiet retirement! Or learn more about whether capitalization is investment.

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