The time for year-end tax settlement in 2022 has arrived. Please note that the organized contents were written with reference to the IRS Hometax data and are applicable only to the year 2022, so if the tax law changes every year, it may change.
Basic concept of year-end tax settlement
This applies to the year-end tax settlement in February 2022. 월세 환급금 조회
Year-end tax settlement is done once a year, and deduction items change every year, and the calculation method is different, so it is not easy for ordinary workers to understand. Also, due to difficult tax terminology, few people know it properly. Of course, once you know it properly, it can be convenient for year-end tax settlement every year, but studying year-end tax settlement is a luxury for busy modern people. 좋은뉴스
First of all, if you learn about the year-end settlement that has changed this year, it is a credit card income deduction and donation tax deduction. First, let’s look at credit card deductions.
[Criteria for credit card deduction]
If this year’s card usage has increased by more than 5% compared to the previous year, an additional 10% deduction is provided for the increased amount. (up to KRW 1 million)
Source: National Tax Service Hometax homepage
[Temporarily expanded donation deduction benefits]
Applicable to donations from January to December 2022
In the case of donations in 2022, 20% of donations below 10 million won will be deducted, and 35% of donations exceeding 10 million won will be deducted. This is a limited-time benefit provided in 2021 and may change in 2023.
▣ Year-end tax settlement period and targets
The year-end settlement simplification service is open from the 15th every year, and in this year’s case, it overlaps with the weekend and opens from the 17th. If you access the National Tax Service Hometax, you can inquire about the expenditure/payment details for each deduction item. (not PDF)
When workers submit deduction data, usually from mid-January to mid-February, the company organizes and finalizes the year-end tax settlement data. Based on the data submitted by the worker, a receipt for withholding tax is sent.
■ Note: What if I don’t do year-end tax settlement?
If you do not file year-end tax settlement at all, office workers can receive earned income deduction, which is a basic deduction item. In other words, only the basic deduction (income deduction of 1.5 million won) and standard tax credit (tax credit of 130,000 won) are applied, increasing the possibility of additional payment later.
However, even with the basic deduction, the final tax amount becomes 0 won, and you can get back all the taxes you paid last year.
■ All of the streamlined services
With the simplified service, you can search and print out the details of expenditure and payment for each deduction item for the previous year. The National Tax Service has collected the necessary evidence from January to December 2021 in advance so that office workers can use year-end settlement more conveniently from receipt submission organizations such as public institutions, financial institutions, hospitals, schools, and pharmacies.
So far, I’ve been learning more about the 2021 year-end payout. Please take a close look at the details organized by deduction item.