[Q&A] Annual salary 70 million won, employee credit limit, 3 million won last year → 3.3 million won this year

The end of the year, when office workers who want to receive a ’13 month’s salary’ through year-end settlement, are the busiest is back. This year, when Corona 19 spreads, unlike previous years, unexpected income (emergency disaster support fund) and credit card income deductions greater than expected are given.

In order for office workers to get even a little more tax back early next year, it is better to take care of various income deductions and tax credits. In this process, it is possible to inadvertently apply for an item that is not a deduction item and incur additional tax.

Among the comprehensive information on year-end settlement information released by the National Tax Service on the 23rd, the items that taxpayers are likely to make mistakes are summarized in one question and one answer format.

-How is credit card deduction applied this year?

“The credit card income deduction is a system that excludes excess usage from income by a certain percentage when using credit or debit cards in excess of 25% of annual salary or receiving cash receipts. In previous years, when using a credit card, 15% was deducted, but this year, 30% of the money used in March and up to 80% of the money used in April-July are deducted. The remainder of the month is deducted 15% by credit card as in previous years. The credit card income deduction limit is increased from 3 million won to 3.3 million won for workers with an annual salary of 70 million or less.”

-Are there any items that can be deducted in duplicate with the credit card deduction?

“If you pay for medical expenses, school uniform purchases, and school expenses that children attend before entering school, you can receive both tax credits and credit cards at the same time. Insurance premiums and donations can be deducted from insurance premiums and tax credits from donations, respectively, but they are not overlapped with credit card income deductions.”

-I moved the company this year. How should I do the year-end settlement?

“The year-end settlement is based on the workplace where you are working at the end of December. In addition, the year-end settlement is done by adding the earned income from the previous work site. The taxpayer must receive ① a receipt for withholding of earned income and ② a copy of the withholding of earned income from the place where he was previously working and submit it to the place where he is currently working.”

-There are items that have not been deducted during the year-end settlement. What if I want to receive a deduction even if it is late?

“If the tax has already been paid or returned, after preparing the deduction-related documents, you can go to the tax office and request correction within five years from the deadline. There is also a way to reflect the missing income deductions and tax deductions when filing annual comprehensive income tax returns in May.”

-I am supporting my parents, so I want to receive a personal deduction. What is the standard?

“If the dependent’s earned income is 5 million won, otherwise, if the annual income including pension or interest is less than 1 million won, it is subject to deduction. Even if you live separately, you can receive a basic deduction if you meet the income and age requirements (over 60 years old). If multiple siblings claim to support their parents, △the person who proves that they actually supported △the person who received a deduction as a dependent in the last year △the person with the largest total income is given priority.”

-Can I get all the money spent on monthly rent deducted?

“If the head of a homeless household with a total annual salary of 70 million won or less lives in a house with a national housing size of less than or equal to 85m2 or less than 300 million won on monthly rent, they can receive tax credit. At this time, only 7.5 million won can be deducted out of the monthly rent, and the deducted amount is 10 to 12% of the monthly rent.”

Sejong = Park Se-in reporter [email protected]

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