[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

Tax filing is the process of calculating 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, those whose annual salary income exceeds 20 million yen are required to file a tax return

Other issuesfailure to submit insurance and various deduction applications,

forgot to apply for the Furusato Nozei (hometown tax donation) program,you should still file your tax return!

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

that amountexceeds 200,000 yen, you must also file a tax return.

In other words, even if you receive your salary from only one source, if your salary income exceeds 20 million yen ,

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

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 a one-month extension to the deadline for filing tax returns for 2020 (Reiwa 2)!

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

 

Furthermore, during this period, you can submit your tax return even on weekends or outside of regular business hours when tax offices are 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

For those with an annual salary of 8.5 million yen or less , the amount of income tax deduction 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

total incomeexceeds 24 million yen, the amount of the basic deduction will be gradually reduced.

If your total income exceeds 25 million yen , the basic deduction amount becomes 0 yen

Changes to the amount of special deduction for blue return filing

The special deduction for blue-form tax returns has been reduced from 650,000 yen to 550,000 yen, a decrease of 100,000 yen !

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

Even if the amount reaches 550,000 yen, that alonedoesn't constitute a tax increase or decrease.

 

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

You can continue to receive the special deduction of 650,000 yen for blue-form tax returns!

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

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

Starting with applications submitted in fiscal year 2020, the total income requirement has been raised by 100,000 yen, making it 480,000 yen or less

This will raise the threshold for total income by 100,000 yen for those earning between 480,000 yen and 1,330,000 yen

 

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

My spouse's annual income remainsunchanged.

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

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

If a child's annual income is 1.03 million yen or less , the parent can claim them as a dependent

Review of single parent deduction

A new single-parent tax deduction has been established this time

If you are a single mother or single father ,

Even if you've never been married, you can receive a 350,000 yen tax deduction if you meet the conditions!

Due to the new system established as described above, the details of the existingwidow(er) deductionwill be changed.

The widower's deductionhas been abolished, and the widow's deduction no longer applies to single mothers,

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

The conditions for receiving the widow's deduction are the same as those for the single-parent deduction (② and ③), and the deduction amount is 270,000 yen

Furthermore, with the creation of the single-parent deduction, the previous"special widow" deduction (deduction amount of 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 need to include all amounts of your hometown tax donations in the calculation of your donation deduction

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!