[2021 tax return deadline extended!] We've put together a simple and easy-to-understand summary of the key points of tax returns!

Hello, it's tax filing season!

I'm sure there are some people who haven't filed their tax returns until the very last minute

No matter how many times I do it, it's only once a year, so I often don't remember it very well

The application process and details may change from year to year

Also, some people are filing tax returns for the first time, and they may be wondering, "What is a tax return?"

I think some people still don't understand

This time, we have summarized the key points of tax returns for 2021 in an easy-to-understand manner!

 

I have written articles about tax returns before, so please take a look!

[For beginners] What is tax return filing? A simple and easy-to-understand explanation!

Don't panic even if it's just before the deadline! Easily prepare your tax return online

A brief explanation of tax returns

A final tax return is a document that calculates income tax based on income and expenses incurred during the year from January 1st to December 31st

This refers to the procedure for filing a tax return with the tax office

 

Even company employees may be required to file a tax return, so

Remember, it's not just sole proprietors!

The company files tax returns on behalf of employees as part of the year-end tax adjustment,

You can assume that you do not need to file a tax return

 

However, anyone with an annual salary of over 20 million yen

In addition, there are cases where insurance and various deduction applications have been omitted ,

forgot to apply for hometown tax, you should still file your tax return!

In addition, there is income other than salary income and retirement income,

the amount exceeds 200,000 yen , you must also file a tax return.

In other words, even if you receive your salary from one place, if you have a salary income of more than 20 million yen

If you have income exceeding 200,000 yen from investments or side jobs other than your salary

You will be subject to tax returns!

When is the deadline for filing tax returns for 2021?

The tax return filing period for the 2021 version (2020/Reiwa 2) is:

From Tuesday, February 16, 2021 (Reiwa 3) to Thursday, April 15, 2021 (Reiwa 3)

*On February 2, 2021, the National Tax Agency announced that the deadline for filing tax returns for 2020 (Reiwa 2) would be extended by one month

The transfer date for transfer tax payments has also been extended. Please check the National Tax Agency website for details

 

During this period, you can also submit your tax return on weekends and outside of business hours when the tax office is closed

If you are too busy to go to the tax office, you can also file your tax return by mail or online

Please apply using the procedure that suits you best

Complete your tax return and pay your taxes by the specified deadline!

Summary of key points for filing tax returns in 2021

Reduction of employment income deduction amount

a salary income of 8.5 million yen or less , the income deduction amount will be reduced by 100,000 yen

If the deduction amount is reduced, I think taxes will increase

For salaried workers with an annual income of 8.5 million yen or less, the basic deduction amount will also be increased by 100,000 yen .

There is no impact on tax increases or decreases。

Review of basic deductions for high-income earners

Until now, all taxpayers have been able to deduct a flat 380,000 yen from the basic deduction

a total income of over 24 million yen , the amount of basic deduction will be gradually reduced.

your total income exceeds 25 million yen , the basic deduction will be 0 yen

Changes to the amount of special deduction for blue return filing

The special deduction for blue return filing has been reduced by 100,000 yen from 650,000 yen to 550,000 yen

The basic deduction amount will be increased to 100,000 yen

Even if the tax rate rises to 550,000 yen, that alone will not result in a tax increase or decrease .

 

However, if you file your tax return via e-Tax (electronic tax return) or keep your books electronically,

still receive the special blue return deduction of 650,000 yen

Sole proprietors who file blue tax returns will be eligible for tax reductions if they meet the above requirements

Follow the steps above!

Raising the standards for determining spousal and dependent deductions

Spouse deductions and dependent deductions are available if you support a spouse, child, elderly parent, etc

Until now, had to be 380,000 yen or less

Starting with the 2020 tax year, the total income requirement has been increased by 100,000 yen to 480,000 yen or less

As a result, the total income amount will also be raised by 100,000 yen for those between 480,000 yen and 1,330,000 yen

 

As mentioned above, the salary income deduction has been reduced by 100,000 yen

When looking at the spouse's annual income, it remains the same as before .

your spouse's annual income is 1.03 million yen, you can still receive the spousal deduction as before

Similarly, even if a child (aged 16 or older) living with their parents is working part-time,

a child's annual income is 1,030,000 yen or less , the parents are eligible for a dependent deduction

Review of single parent deduction

A new single parent deduction has been established.

you are single mother or father

Even if you have never been married, you can receive a 350,000 yen deduction

Due to the new legislation mentioned above, the content of the existing widow (widower) deduction will be changed.

The widow's deduction has been abolished, and the widow's deduction does not apply to single mothers,

People who have experienced divorce or widowhood are eligible for the deduction

The conditions for applying the widow's deduction are the same as ② and ③ for the single parent deduction, and the deduction amount is 270,000 yen

In addition, with the creation of the single parent deduction, the previous "special widow" deduction (350,000 yen) has been abolished.

Other points to note

Those who have submitted an application for the "Hometown Tax One-Stop Special Exception"

If you have submitted an application for the application of the one-stop special exemption for hometown tax donations and are filing a tax return,

The one-stop special exemption cannot be applied！

When filing your tax return, you must include all hometown tax donations

Please be careful here!

summary

Increasing your deductions will reduce your taxable income, thereby reducing your tax burden

However, under this revision, for salaried workers,

It will be offset against the salary income deduction, so it will not affect your taxes

It's important to be aware that some self-employed individuals qualify for tax reductions

Either way, please make sure to complete your tax return by the deadline!