Tax: a retiree forced to repay more than 22,000 euros because she works 'too much'

modified: 2023-01-23 23:06:02

After a career at the Post Office, a retired civil servant finds herself having to repay thousands of euros to the tax authorities.

  Tax: a retiree forced to repay more than 22,000 euros because she works 'too much'

For many older people, retirement results in a certain decline in the standard of living . In question ? Low pensions, often lower than their last salary. A lady recently paid the price. After more than 20 years of career in the civil service, at the Post Office , she stopped working in 2010. But she was only able to receive a pension of 900 euros. Also, to maintain its purchasing power, it has chosen to find additional employment . A courageous decision, which nevertheless puts her in an unfortunate situation vis-à-vis the tax .

The retiree finds herself with 22,000 euros to repay

Like many older people, Nicole was struggling to make ends meet . With only 900 euros in retirement, she could barely pay her daily expenses. And indeed, it was an incomplete pension, at 49%. Also, from the end of sa carrière , she informed her pension fund that she wanted to continue working. So she took a bakery job . Then, a job at the municipality some time later. 10 years later, the tax authorities claim nearly 22,000 euros from him.

However, during all this time, Nicole has always declared her income to taxes . The taxman therefore knew how much she earned through her salaries as well as with her retirement. But now, in addition to the money that the tax authorities claim from him , the pensioner lost half of her pension. “I don’t even have enough to pay for my water and electricity. Overnight, you can find yourself on the street when you have a pension and a job. »

But why these penalties? According to the tax authorities, this woman should not have received a salary higher than her pension. However, since some of these salaries exceeded 900 euros, she must therefore reimburse money.

Tax: the conditions for combining employment and retirement

This surreal situation is no exception. Laurent Rabbé, lawyer specializing in public law , recalls that many public service retirees often forget this tax rule . According to him, it is a « triple », even a 'fourfold punishment' . » You have worked in a precarious job, with a small pension, the lower the level of cumulation authorized. When there is a problem, you pay very large sums when you have very modest incomes. »

In effect, the rules of combining employment and retirement seem quite unfair to former public servants. Faced with fairly low pensions, they are almost forbidden to earn more. And this, even working honestly . According to the website Service public , people who have completed their career in the public service before 2015 , depend on particular rules. Standards taken into account by the tax authorities and the pension fund . If your earned income exceeds this authorized ceiling, the excess is deducted from your pension. Example: If the gross annual amount of your basic retirement pension is equal to €15,000, you can fully combine your pension with income from activities if this income does not exceed €15,000 / 3 + €7,549.92 , i.e. €12,549.92 gross per year. »

Source : Orange