Today, we will look at a preview and mock calculation of the 2024 year-end tax settlement. The year-end tax settlement preview service provided by Hometax will be implemented from October 27, 2022. There have been changes to the deduction items, so you must check and prepare.
Credit card income deductions are 15% for credit cards and 30% for check cards or cash receipts for amounts exceeding 25% of total salary. In addition, the amount spent on traditional markets, public transportation, books, and performance expenses can be deducted up to 3 million won in 2023.
Year-end tax settlement preview
A preview of year-end tax settlement is available on Hometax. It is also possible through Naver, Daum, etc., and also through banking services such as Toss, but the basic service is provided by Hometex. Here’s how to look it up:
Click ‘Inquiry/Issuance’ on the top menu of the National Tax Service Home Tax.
Click ‘Preview year-end tax settlement’ in Inquiry/Issuance.
Proceed with a joint certificate or simple authentication.
Click ‘Calculate Income Deduction’ at the bottom left.
Enter everything from total income to deduction items and proceed to calculate income deductions.
You can check whether you will receive a refund by checking the determined tax amount.
👇 Go to Hometax app (Android)
👇Go to Hometax app (iPhone)
Home tax simulation calculation method
The National Tax Service’s Home Tax is operating an automatic calculator site to help office workers easily do their year-end tax settlement. Please follow the steps below:
Home Tax Login
Click ‘Tax Service-Specific Calculation’
Modification of ‘Total Salary and Tax Paid’
Enter total salary and income tax amount already paid
Enter income deduction items
Special tax deduction, medical expenses
Check refund amount
Year-end tax deduction items
income deduction
The credit card income deduction rate is 15% for credit cards and 30% for check and debit cards and cash receipts. In particular, the income deduction amount standards for various cards are applied starting from the amount exceeding 25% of the withheld income.
Please note that year-end tax settlement is calculated starting from the credit card amount, so it is advantageous to use up to 25% of your income on credit cards and then increase the deduction amount with cash or check card!
Income deduction limit
Annual income less than 70 million won: 3 million won
700 to 120 million won: 2.5 million won
Exceeding 120 million won: 2 million won
An additional income deduction of 3 million won is available for use at traditional markets and public transportation.
Monthly rent tax deduction
As for the monthly rent, the standard market price of houses subject to deduction has been expanded from 300 million won or less to 400 million won or less, so those who are eligible must provide proof by issuing a cash receipt from Hometax.
In particular, please note that those who are the head of a household without a home with a total salary of 70 million won or less can receive a monthly rent tax deduction without submitting documents because the amount corresponds to a general cash receipt.
Pension Tax Credit
I think pension is something that cannot be left out in year-end tax settlement. This is because the tax credit limit for IRP, an individual retirement pension, and personal pension has been expanded from 7 million won to 9 million won. If you deposit 9 million won into your personal account by the end of December, you can receive up to 16.5%, or 1.485 million won.
One thing to keep in mind is that if you cancel your pension right away after receiving the tax deduction benefits, you will have to cough up the amount you gained.
Year-end tax settlement period
Usually, data for year-end tax settlement is entered around the third week of January, the results are confirmed in February, and then reflected in the salary in March. Between January 15th and 18th of each year, you can use the service and calculate the estimated tax amount on the National Tax Service website at Hometax -> Convenient Year-End Tax Settlement.
From January 15th, you can check all of your information through the convenient year-end tax settlement.
After verification, you must register any missing parts on the site (receipts, donations, medical expenses, etc.)
It must be submitted to the company by saving and printing as a PDF file in early February.
You can check whether you have received a tax refund or additional payment by checking your withholding tax receipt around the end of February.
For reference, if you are unable to make the year-end tax settlement within the period, you can do so in May, which is the finalization period for the comprehensive return. Additionally, if you were unable to make the year-end tax settlement during the May comprehensive income period, you can proceed with the year-end tax settlement through a correction claim on the Home Tax website.
Enter salary items
You must enter the salary section manually. If this is done after the company completes the year-end tax settlement, the total salary and tax amount already paid will be automatically checked. If you wait a bit, you can automatically perform more accurate simulation calculations.
When not linked: Directly fill out the 2022 salary and tax payment amount shown on the company’s salary statement.
finish
Today, we learned about how to preview year-end tax settlement and check expected refund. I am looking forward to the 13th month’s salary and hope to receive at least a little more in refund. I hope that you will receive a second salary next year through careful year-end tax settlement.
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