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Can you explain?Difference between "year -end adjustment" mechanism and final tax return | @dime at daim

"Year -end adjustment", which is done every year for office workers.Although it is known that the company is a tax procedure, many people do not understand the specific system content.

Therefore, in this article, the difference between the year -end adjustment mechanism and the final tax return is explained in an easy -to -understand manner.If you make good use of the system, you can reduce the tax burden, so please take this opportunity to deepen your understanding.

What is year -end adjustment?

"Year -end adjustment" is simply a procedure for a company to recalculate the income tax amount of employees.In general, it is often done around December.

Re -calculation of income tax

Income taxes such as office workers have been subtracted in advance from monthly salaries and bonuses as "withholding".However, the tax amount paid in withholding is just the planned amount, and does not reflect the personal circumstances of the taxpayer's individual.

Therefore, there is a year -end adjustment as a procedure for calculating the correct tax payment by reflecting different "deductions" for each person.As a result of the recalculation, if the tax payment amount is excessive, the error will be refunded or collected.

What is the difference from the final tax return?

Similar to year -end adjustments, there is a "final tax return" in the tax system.The year -end adjustment is a system in which the company calculates income tax and tax payment procedures on behalf of employees, and in principle, salary income.On the other hand, the final tax return is a procedure for taxpayers to calculate the income tax and declare and pay the tax, and mainly by sole proprietors.

However, even if the salary income is a salary income, it is necessary to file a tax return as an exception if the salary income exceeds 20 million yen or the salary from two or more places.In addition, some deduction items such as special deductions such as housing borrowing (first year), medical expenses deduction, and donation deduction (hometown tax payment) cannot be processed at the end of the year.Therefore, even if a salary income is a tax return, the tax returned may be returned.

説明できる?「年末調整」の仕組みと確定申告との違い|@DIME アットダイム

People who are subject to year -end adjustment

In principle, employees who belong to the company are subject to year -end adjustments, and many companies also carry out part -time and part -time jobs.However, if you have two or more companies, you must file a tax return depending on the income amount and other conditions.

How to adjust the year -end?

The year -end adjustment is performed by filling in the necessary documents and submitting it to the place of work together with various certificates.After that, the company re -calculates the tax amount, and the tax payment procedure is carried out, and the submitted documents are stored for a certain period (seven years from the following year on January 10, the following year).The main documents are as follows.

【Required documents】

"Deduction of dependents (transfer) for salary income earners": To receive dependent deductions, etc. "Insurance Deduction Deduction Form": In order to receive insurance premiums such as life insurance premiums and social insurance premiums."Basic deduction of salary income and spouse deduction of salary income and income deduction and income adjustment deduction declaration"

It is necessary to submit a declaration (transfer), etc. (transfer), etc. (transfer), etc. of salary income earners, even if there are no dependents.The type and writing method of the tax return can be confirmed on the official website of the National Tax Agency.

What is "income deduction"?

The important thing for year -end adjustment is "income deduction".It is provided to reflect the various circumstances of taxpayers in the tax calculation and adjust the tax burden.

Elements for calculating "taxable income"

Income tax has a "progressive taxation system", and the tax rate varies depending on the income amount (taxable income), which is subject to tax.The taxable income is calculated by subtracting the income deduction from the total income of the year.In other words, the larger the income deduction amount, the smaller the taxable income, so that the as a result, the burden on the income tax is reduced.Income deductions include many other items, such as "basic deduction", "dependent deduction", and "medical expenses deduction" that are often heard.

What is the difference from "tax deduction"?

A word similar to income deduction is "tax deduction".Income deduction is a system to adjust the taxable income that is the basis of tax calculation, while tax deduction is deducted from the tax amount that multiplies the taxable income.Since the amount directly is subtracted from the final tax amount after the calculation, the stage is different from the income deduction.

What is income adjustment deduction?

"Income amount adjustment deduction" is a system established by the tax reform in 2018, and is applied from the income tax for the second year of the law.The main purpose is to consider the salary of over 8.5 million yen, which has increased tax burden due to the reduction of "salary income deduction" and "public pension deduction".

Requirements for applying

The income amount adjustment deduction is applied to a salary income person with a salary of over 8.5 million yen due to the salary of the year, and a person who meets any of the following requirements.

・ When the person falls under special disabilities ・ If you have a dependent relatives under the age of 23, ・ If you have a special disabled person or a dependent relative

In order to receive the deduction, it is necessary to submit the "Income Adjustment Deduction Doument Form" to the employer at the end of the year.

Sentence / OKI

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