We have summarized the method of year-end tax settlement for mid-term retirees.
If you are working for a company, it is easy to fill out the year-end tax settlement form in January and submit the data to the company.
If you leave the company during the year and move to another place in the same year 중도퇴사자 연말정산
Let’s say you left the company in the spring of 2020 and joined another company in the fall.
These people can submit the year-end tax settlement data and the withholding tax receipt received at the time of leaving the previous job to the current place of residence and make the year-end settlement. 좋은뉴스
Medical expenses, education expenses, housing funds, credit cards, subscription savings, etc. cannot be deducted among expenses incurred during the period of rest.
Contributions and pension savings can be deducted from expenses incurred for one year.
If you are looking for a job or taking a break after leaving the company throughout the year
In the case of mid-term retirement, the year-end settlement of the retiree is briefly performed when the company pays the wage and salary income for the month of retirement.
However, in this case, only those that can be easily entered are applied, so you must report directly during the global income tax return period in May. In this case, the withholding tax receipt from the former employer is required.
When you retire and start a business
Earned income and business income are generated together in the year.
You can file a global income tax return in May of the following year by adding up the salary income earned while working for the company and business income earned while doing business.
Among the special deduction items, medical expense deductions and credit card deductions are deducted only from earned income, so only those used during the period of service before retirement can be deducted.
How to get a withholding tax receipt
There is a way to get it by requesting it from your previous employer.
It can be issued from the submission details such as the payment statement at Hometax of the National Tax Service.
Tax issues related to severance pay
Severance pay is paid to employees who leave the company after the company withholds the retirement income tax.
If you are subscribed to a retirement pension, the company pays the severance pay to a financial institution that subscribes to the retirement pension.
If you receive your retirement pension in the form of an annuity, 70% of your retirement income is taxed separately.
If you transfer your severance pay to your pension account and receive it as an annuity after age 55, you can save 30% of your retirement income tax.
If there is a refund after filing a global income tax return in May, you can receive a refund in July.