[2021 filing deadline extended! ] We have summarized the main points of final tax return in an easy-to-understand manner!

Hello, it's tax return season!

Isn't there some people who haven't yet filed their tax return until the last minute?

No matter how many times I do it, it only happens once a year, so I often don't remember much about it.

Depending on the year, the application method and contents may change.

Also, some people are filing a tax return for the first time, and they wonder what a tax return is in the first place. and

I think some people still don't understand it.

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

 

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

[For beginners] What is a tax return? Easy and clear explanation!

Don't rush even at the last minute! Easily prepare your tax return online.

A brief explanation about final tax returns

A final tax return calculates income tax from income and expenses incurred during the year from January 1st to December 31st

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, you’re not just a sole proprietor!

The company files tax returns on behalf of employees in the form of year-end adjustments, so

It's okay if you think you don't need to file a tax return.

 

However, those whose annual salary income exceeds 20 million yen

In addition, failure to submit insurance and various deduction applications ,

forgot to apply for hometown tax , please file your final tax return!

Also, if you have income other than employment income and retirement income,

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

In other words, even if you receive your salary etc. from one place, your salary income exceeds 20 million yen ,

If you earn more than 200,000 yen from investments or side jobs other than salary income

You will be eligible for a final tax return!

When should I file my tax return for 2021?

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

From Tuesday, February 16, 2021 to Thursday, April 15, 2021

*On February 2, 2021, the National Tax Agency announced a one-month extension

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

 

Also, during this period, you can submit your tax return even on weekends and after hours when the tax office is not open

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

Please apply using the procedure that suits you.

Complete your tax return and pay your taxes by the designated period!

Summary of points for tax return in 2021

Reduction of salary income deduction amount

a salary income of 8.5 million yen or less will be reduced 100,000 yen from before

If the deduction amount is reduced, I think the tax will increase.

If you are a salaried worker with an annual income of 8.5 million yen or less, be increased by 100,000 yen

No impact on tax increases or decreases。

Review of basic deduction for high income earners

Until now, all taxpayers were able to deduct a uniform amount of 380,000 yen from the basic deduction.

total income exceeds 24 million yen , the amount of basic deduction will gradually decrease.

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

The deduction amount for blue tax return special deduction has changed.

The special deduction amount for blue tax returns has been reduced from 650,000 yen to 100,000 yen, to 550,000 yen

The basic deduction amount will be raised to 100,000 yen, so

Even if it is 550,000 yen, that alone will not result in a tax increase or tax reduction .

 

However, if you file by e-Tax (electronic tax return) or save electronic ledgers,

You can continue 650,000 yen

If a sole proprietor who files a blue tax return can meet the above requirements, he or she will receive a tax reduction.

Follow the steps above!

Raising the criteria for determining spousal deductions and dependent deductions

Spousal deduction and dependent deduction are available if you support your spouse, children, elderly parents, etc.

Previously, the total income of spouses and dependents had to be 380,000 yen or less, but

From the 2020 submission, the total income requirement has been increased by 100,000 yen 480,000 yen or less.

As a result, the total income amount will be increased by 100,000 yen from more than 480,000 yen to less than 1,330,000 yen .

 

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

The spouse's annual income remains unchanged .

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

Similarly, if a child (age 16 or older) who lives with their parents works part-time,

the child's annual income is less than 1,030,000 yen , the parent can receive a dependent deduction

Review of single parent deduction

From this time, a new single parent deduction has been created,

If you are a single mother or father

Even if you have no marital history, if you meet the conditions, you can receive a deduction of 350,000 yen

Due to the above-mentioned new creation, the widow (widower deduction) deduction that will be changed.

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

People who have experienced divorce or bereavement are now eligible for the deduction.

The conditions for applying the widow 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 amount of 350,000 yen) was abolished.

Other points to note

Those who have submitted an application for the “Hometown Tax One-Stop Special Provision”

If a person who has submitted an application regarding the application of the hometown tax one-stop special provision files a final tax return,

One-stop exception cannot be applied.！

When filing your final tax return, all hometown tax payments must be included in the calculation of donation deductions.

Please be careful here!

summary

As the amount of deductions increases, your taxable income will decrease, which will reduce your tax burden.

However, with this revision, for salaried workers,

There will be no impact on taxes as it will be offset against employment income deduction.

There are some sole proprietorships who receive a tax reduction, so you need to be careful.

In any case, please make sure to complete your tax return by the deadline!