The turn of the year brings important legal changes that many will feel in their own wallets. As every year, consumers have to adapt to innovations at the turn of the year 2022/2023.
The financial service provider MLP has compiled the most important changes:
The savings allowance – formerly known as the savings allowance – ensures that capital gains remain tax-free for income tax if they do not exceed a certain amount. Capital income includes interest and dividends. From 2023, the allowance will increase from 801 to 1000 euros. That is an increase of around 25 percent. For spouses filing jointly, it climbs from 1,602 to 2,000 euros.
The tax-free basic allowance increases from 10,347 euros in 2022 to 10,908 euros in 2023. Couples can use twice the amount. Only those who have a higher income in the coming year will have to pay income tax at all.
On January 1, 2023, the midi job limit will increase significantly. Employees then only have to pay full social security contributions from an income of 2000 euros per month. As of October 1, 2022, the limit had already risen from 1,300 to 1,600 euros. The statutory minimum wage has been €12 an hour since October, and the earnings limit for mini-jobbers has risen from €450 to €520.
Child benefit will also increase next year. Families then receive 250 euros per month for the first three children (previously 219 euros for the first and second child, 225 euros for the third child). From the fourth child, there is still 250 euros per month.
Example calculation: If you have three offspring entitled to child benefit, you will receive 750 euros per month in the new year. So far it was 663 euros. The increase is a good 13 percent.
Further adjustment: The child allowance increases on January 1 from 8548 to 8688 euros per year.
A maximum annual income of EUR 59,850 is taken into account when collecting the contributions to statutory health insurance. The switch of employees to private health insurance (PKV) is made even more difficult and is possible from an annual gross income of 66,600 euros. In 2022, this threshold was 64,350 euros.
The average additional contribution for those with statutory health insurance increases by 0.3 percentage points to 1.6 percent. This also increases the maximum employer subsidy for privately insured persons to EUR 403.99 for health insurance and EUR 76.06 (EUR 51.12 in Saxony) for compulsory long-term care insurance.
As of January, the temporary surcharge for financing the corona-related additional costs of 7.30 euros for people entitled to assistance and 3.40 euros for all other people who pay a contribution to compulsory nursing care insurance will no longer apply to private health insurance. This means that monthly premiums will fall slightly in 2023. But those with private insurance should not celebrate too early: “Compulsory nursing care insurance is only really cheaper for those entitled to benefits – for everyone else, the loss due to a premium adjustment does not make it into their wallets,” explains Miriam Michelsen, Head of Pensions and Health Insurance at MLP.
Retirees can earn unlimited income
From 2023, all pensioners will (probably) be able to earn unlimited additional income in addition to their old-age pension. The draft law of the Federal Government of the 8th SGB IV Amendment Act has already been published and only needs to be confirmed by the Bundestag and Council. The reform envisages:
The FOCUS Online Guide answers all important questions about pensions on 135 pages. Plus 65 pages of forms.
Indicator for pension insurance increases
The increase in the contribution assessment ceiling (BBG) for general pension insurance is usually due in January. This limit is the maximum gross salary that is taken into account when determining the contributions to statutory pension insurance. The result: Only the part of the gross salary that goes beyond this is non-contributory.
On January 1, 2023, the BBG will increase again: In the
Due to the corona pandemic and the associated negative income development, the BBG 2022 fell for the first time. But the dent has been overcome.
On July 1, the value of a pension point will also increase. Since July 1, 2022, this has been EUR 36.02 in western Germany and EUR 35.52 in the new federal states. However, the exact amount of the increase will not be known until spring 2023.
The tax subsidy amount for direct insurance, pension funds and pension funds as part of company pension schemes (bAV) will increase in the new year: from 564 to 584 euros. In addition, the social insurance-free contribution increases from 282 to 292 euros per month. Important: Direct insurance companies and pension funds are not affected by this.
Other private old-age provision variants also benefit: the higher social security-free subsidy amount also applies to provident funds and direct commitments as part of deferred compensation from January. In these cases, too, it increases from 282 to 292 euros per month.
Basically, benefits of the bAV are subject to contributions in the statutory health and long-term care insurance. (People with private health insurance are not affected.) However, since 2020 there has been an exemption up to which the health insurance contributions are waived. This will increase in the coming year from 164.50 to 169.75 euros per month. Pensioners who are compulsorily insured only pay contributions for benefits that exceed this exemption amount. So you save a few euros in health insurance contributions.
The same applies to the exemption limit for long-term care insurance. This also increases to 169.75 euros per month. If this limit is exceeded, the entire benefit is subject to contributions. Be careful: the above-mentioned simplifications only apply to people who are compulsorily insured, but not to those who are voluntarily insured.
Basic pension contributions can be deducted from taxable income as special expenses together with the contributions to statutory pension insurance. The possible amount for this increases from January to 26,528 euros (or 53,056 euros for married couples). As part of the federal government’s third relief package, 100 percent of this should be deductible in the future; in 2022 it was 94 percent. The rate should actually only rise to 96 percent in the new year.
Depreciation for residential construction: 3 percent depreciation from July 1, 2023
Landlords should be able to write off newly built rental apartments more quickly than before. The Ministry of Finance plans that new rental residential buildings that are completed from 2024 can be depreciated at three percent annually.
The total amortization period would thus be reduced from 50 to 33 years. The regulation is to apply from July 1, 2023, six months earlier than originally planned. For buildings that are completed by 2023, the depreciation allowance (AfA) is expected to remain at two percent annually.
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With the start of the citizens’ allowance, millions of people in need will receive significantly higher payments on January 1st. After weeks of struggle, the central socio-political project of the traffic light coalition cleared the last hurdles at the end of November.
In view of the high inflation, the payments in the basic security increase by more than 50 euros. Single people will receive 502 euros per month in 2023.
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Large parts of the reform will not come into force until July 1st. The job centers should then take more care of the unemployed. The mediation in permanent work instead of helper jobs should succeed better. For this purpose, the employment agency wants to provide those affected with further training. Recipients of basic security may also earn more in the future, for example with mini jobs.
Contrary to the original government draft, possible sanctions were tightened under pressure from the CDU and CSU. As early as January 2023, reductions in citizen income are staggered and possible up to a maximum of 30 percent if, contrary to the agreements, the unemployed do not apply for a job or refuse a qualification measure. Those affected may also keep less of the money they have saved than initially planned. This so-called protective assets will amount to 40,000 euros in a “waiting period” of one year.
The FOCUS Online Guide answers all important questions about pensions on 135 pages. Plus 65 pages of forms.
