There is homework that needs to be prepared from now on, and that is year-end tax settlement.
Even though it is the 13th month’s salary, it does not mean you can get it back unconditionally. Depending on how you prepare, you may pay more taxes.
Because you can pay it. You can plan your year-end tax settlement strategy through the year-end tax settlement preview service provided by the National Tax Service.
Please stand it up carefully.
Year-end tax settlement preview
1. What is year-end tax settlement preview?
This is a service that allows you to calculate your year-end tax amount in advance in order to prepare for your year-end tax settlement from January to February 2024. Through the year-end tax settlement preview service, you can prepare a strategy that is advantageous to you.
Year-end tax settlement, which is always difficult every year, determines various deductions based on total salary, which is taxable income.
The calculations are complicated, but in the end, what matters is the income deductions and tax credits that reduce taxes. If you make good use of these two deductions, your chances of receiving a refund will increase.
Income deduction → lowering income, tax credit → lowering tax amount
Tax deduction amount > Income deduction amount
If you do not receive a tax deduction, you can apply for an income deduction.
Apply for a preview of year-end tax settlement
Year-end tax settlement preview
Year-end tax settlement preview
Year-end tax settlement preview
2. Specific income deduction items
Representative examples include personal deductions, health/pension/employment insurance premiums, housing funds, credit card/cash receipts, etc.
there is. Here, personal deduction refers to expenses for dependents who are responsible for making a living, such as parents and children.
This is a deduction that reduces the tax.
Among income deductions, one item that you need to pay particular attention to and plan a strategy for is the credit card usage deduction principle.
It varies depending on the amount I use in a year, and credit card usage is deductible from the amount exceeding 25% of the total annual salary. There is a limit though.
Example) If the total salary is less than 70 million won, the basic deduction is up to 3 million won, and if the total salary exceeds 70 million won, the basic deduction is up to 2.5 million won.
There is a 15% deduction for credit cards and a 30% deduction for check cards, so you can use the check card for the sections where the deduction is deducted and enjoy the credit card benefits for the sections where the deduction is not possible. However, if you must use a credit card, enjoy credit card benefits for up to 25% of your annual salary, and bring a check card or cash receipt for more than 25% of your annual salary to maximize the deduction.
People who do not need credit card benefits can use a check card or cash receipt.
Additional deduction items include traditional markets, public transportation, books, newspapers, museums, and art galleries, but not books, performances, museums, and art galleries.
Applicable only to those with a total salary of 70 million won or less.
Year-end tax settlement preview
Year-end tax settlement preview
Year-end tax settlement preview
tip) If you have clothes you don’t wear, donate them to Beautiful Store and receive a receipt for your donation. And if you have a religion
Be sure to bring receipts for religious donations.
Employees of small and medium-sized businesses are eligible for income tax reduction up to 1.5 million won.
Eligibility for support: 15 to 34 years old (based on those who have signed an employment contract)
You can submit an application for exemption to the company.
3. Specific tax deduction items
Representative examples include pension accounts, insurance premiums, medical expenses, education expenses, donations, monthly rent, and child tax credits.
There are items that receive both income deductions and special tax deductions. Medical expenses (infertility treatment possible), school uniform purchase expenses, and academy fees paid with a credit card can all be eligible for income deductions and a 15% tax deduction for medical expenses and education expenses.
Monthly rent tax deduction conditions
– Annual salary of 70 million won
– Head of household without a home
– Living in a house with a market value of 300 million won or less
Tax deduction available up to a total limit of 7.5 million won
Up to 12% of annual salary less than 50 million won can be deducted. (Monthly rent total of 10 million won per year, 12% deduction, 1.2 million won deduction)
Cases not eligible for monthly rent tax deduction
– Annual salary of 70 million won or more
– Owned home
– Residents of houses with a market value of 300 million won or more apply for an income deduction, not a tax credit.
Year-end tax settlement preview
Year-end tax settlement preview
Year-end tax settlement preview
4. How to preview year-end tax settlement
1) Go to [Year-end tax settlement] < [Year-end tax settlement preview] on the National Tax Service website.
Apply for a preview of year-end tax settlement
2) Enter basic data and calculate in the order below.
-Load the 2022 payment statement from the year-end tax settlement preview page.
– Please enter the expected total salary for this year, referring to the 2022 information.
– If you have dependents, click on them to add them.
– Click Import credit card data and enter the estimated amount spent in December.
– Once you have entered all the data, click [Calculate] <[Save]<[ step 2] in order.
3) Check the results of the past 3 years and expected values for next year on the year-end tax settlement summary page.
If the deducted amount is -, the tax will be refunded. If the deducted amount is +, you will have to pay more tax.
Year-end tax settlement preview
Year-end tax settlement preview
Year-end tax settlement preview
Be sure to distinguish between income deductions and tax deductions in December and take note of the things you can take care of, so that your year-end tax settlement results are as follows:
It would be nice if it was the 13th month’s salary.