German tax authorities may request bank statements from pensioners

German tax authorities have the legal right to request bank statements from pensioners to verify tax declarations. Under Section 90 of the Tax Code (Abgabenordnung), taxpayers are obligated to disclose all relevant facts and provide evidence to assist in tax audits. While the tax office can request records, business papers, and other documents under Section 97, they must adhere to the principle of proportionality and base their inquiries on specific cases rather than conducting unrestricted searches into private lives.

Pensioners with additional income sources—such as rental income, capital gains, or self-employment—are more likely to face inquiries to ensure all earnings are reported and claimed expenses are legitimate.

To optimize tax returns, pensioners can deduct various expenses. These include professional costs related to receiving a pension, such as fees for pension consultants, legal costs regarding pension applications, and certain bank account management fees. Additionally, special expenses like health and long-term care insurance premiums can be deducted. If no specific amounts are provided, the tax office applies standard lump-sum allowances for certain categories.