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Income estimate

An income estimate is a prerequisite for payments from Tryggingastofnun. In order to ensure that pensioners receive the payments to which they are entitled, adequate information on their income must be made available. Pensioners or their guardians/agents have the best overview of their annual income. As a result, it is vital that they review their income estimates themselves and correct them if necessary.

Correcting an incorrect income estimate is in the best interests of the payment recipient. A well prepared income estimate will prevent incorrect payments that have to be corrected later. Payments are recalculated and corrected when information on the levies imposed by tax authorities becomes available.

In the beginning of each year, all pensioners receive an income estimate for that upcoming year. They need to examine these and correct them if necessary. Income is pre-registered in the income estimate and is based on the most recent valid income estimate. Pre-registered income increases in accordance with price index increases proposed by the authorities.

Particular note is made of the fact that pensioners are responsible for ensuring that their income estimate is correct. According to law, pensioners are under obligation to inform Tryggingastofnun of any changes in their income. Income estimates must be signed.

  • Correcting an incorrect income estimate is in your own best interests.
  • A well prepared income estimate will prevent over/under-payments that have to be corrected later.
  • Payments for the year 2015 will be recalculated and settled in 2016.

Electronic submissions on Mínar síður Mínar síður

Pensioners can now correct their income estimates electronically at any time on the website Mínar síður The site allows the electronic preparation of income estimates and provides instant preliminary calculations of payments.

Use your Íslykil identification or electronic certification on debit card /mobile phone to enter TR´s  service website “Mínar síður”. 

Forms

Note that you will only have to submit an income estimate if any changes are made.

Several important items

New type of income
Examine closely whether any income items are missing from the estimate. Will you be receiving pension payments from a pension fund for the first time this year? Are you planning to sell property that generates capital income? Such changes create incomes that could make a difference in the calculations of social security payments. The best method is to estimate the income that may result from any changes and submit a new income estimate when the final figures become available.

Total income
The estimate is based on total income for the year, before withholding tax. Monthly income should not be registered. If any income is anticipated during a part of the year, the total amount of such estimated income is registered. Capital income counts as the joint income of a married couple, the total of which should be registered.

Estimated increases in income categories
Despite uncertainties in price index increases regarding individual income categories, income estimates must be examined and corrected as needed. The income estimate is based on information from the most recent tax returns.

Capital income
Capital income includes income from real property and liquid funds, sales profits, interest, price level adjustments, depreciation and exchange rate gains on commercial bank and savings bank deposits, securities, outstanding claims, other deposits and shares, dividends from shares, dividends and interest on principal accounts. It is important to make a note of anticipated capital income in the income estimate for 2014.

Income of spouse
The income of a spouse does not affect payments from Tryggingastofnun. However, capital income is always joint income between couples, regardless of which one is the actual owner.

Evidence gathering
If necessary, Tryggingastofnun reserves the right to request documentation supporting the new/changed income information, pursuant to Article 52 of the Social Security Act No. 100/2007 and, as appropriate, to delay new calculations until it has received such documentation.

This site was revised 1st. September 2016 



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