[2021] List of income deductions that can be taken at the time of year-end adjustment and tax return [No loss]

Hello, this is Sakashita from the management department.

This is a busy time for everyone as we approach the end of the year.

I'm sure you're busy collecting documents for year-end adjustments and tax returns.

"I know about year-end adjustments and tax returns, but I only briefly know what kind of income deductions are available."

For those who say, "I don't know which income deductions I can receive in the first place,"

This time, we have summarized the types of income deductions you can receive at the time of year-end adjustment and tax return in an easy-to-understand manner.

What is income tax deduction?

Income tax deduction is a system that allows a certain amount to be deducted from income if certain conditions are met when calculating income tax.

You can reduce your tax burden with income tax deductions!

List of deductions you can receive

There are 15 types of income deductions, and the more types and amounts of deductions you apply, the greater the tax savings.

In other words, the larger the amount that is deducted from your income, the less your taxable income will be, and the less tax you will have to pay.

Basic deduction

In principle, the basic deduction is applicable to all taxpayers whose total income is 24 million yen or less.

The amount of deduction will vary depending on the total income amount.

Miscellaneous loss deduction

Miscellaneous loss deduction is a deduction that is applied when you suffer damage due to natural disasters, theft, embezzlement, etc.

In addition to natural disasters such as earthquakes, typhoons, heavy snow, and lightning strikes, this coverage also applies to cases such as fire, theft, burglary, embezzlement by employees, and extermination due to termite damage.

As year-end adjustment procedures cannot be carried out for miscellaneous loss deductions, it is necessary to apply by filing a final tax return.

In addition, if the amount of damage is so large that it cannot be deducted from that year's income, it can be carried forward and deducted from the next three years' income.

Medical expense deduction

Medical expense deduction is a deduction that can be applied when medical expenses are incurred due to illness or injury.

The medical expenses of spouses and other relatives who share the same livelihood as the taxpayer can also be deducted together, so in addition to the medical expenses of a wife and son who live with the taxpayer, medical expenses of parents who live separately but still send money can also be deducted. It will be eligible.

The amount that can be deducted is the amount obtained by subtracting 100,000 yen from the amount of medical expenses paid minus insurance benefits and benefits received.

As a general rule, if you pay medical expenses of 100,000 yen or more in a year, you can receive a medical expense deduction.

Medical expenses eligible for medical expense deduction include not only hospital treatment costs and prescription drug costs, but also the purchase cost of over-the-counter medicines such as cold medicine.

As with miscellaneous loss deductions, year-end adjustment procedures cannot be carried out for medical expense deductions, so you must apply by filing a final tax return.

Social insurance premium deduction

Social insurance premium deduction is a deduction that is applied when you pay social insurance premiums such as national health insurance premiums, national pension insurance premiums, employees' pension insurance premiums, long-term care insurance premiums, and late-stage elderly insurance premiums.

Even if a spouse or relative who makes the same living as the taxpayer pays social insurance premiums, the amount paid can be deducted from income, so the entire amount can be deducted from the taxpayer's own income. You can.

The social insurance premiums that can be deducted are as follows.

Small business mutual aid premium deduction

The small business economic premium deduction is a deduction that is applied when you pay small business mutual aid premiums.

The amounts that can be deducted are as follows:

Individual type pension member contributions are ``iDeCo,'' and those who use iDeCo can receive deductions for small business mutual aid, etc. contributions.

The amount deducted will be the full amount paid in one year.

Life insurance premium deduction

Life insurance premium deduction is a deduction that is applied when paying life insurance premiums, nursing care insurance premiums, and personal pension insurance premiums.

The maximum deduction amount is set for each category of insurance contract, and the handling of life insurance premium deductions is different for old contracts concluded before December 31, 2011 and new contracts afterward.

The method of calculating the deduction amount differs between the old contract and the new contract, but the maximum deduction amount is 120,000 yen.

If the year-end adjustment is not completed in time, you can apply for a life insurance premium deduction by filing a refund.

Earthquake insurance premium deduction

Earthquake insurance premium deduction is a deduction that is applied when you pay earthquake insurance premiums, etc.

Earthquake insurance premiums paid and long-term damage insurance premiums subject to transitional measures are eligible for deduction.

The deductible amount is determined according to the amount of insurance premiums paid in that year, but the maximum deductible amount is 50,000 yen.

Donation deduction

The donation deduction is a deduction that is applied when you donate to the country, prefecture, municipality, etc.

Income deductions or tax credits are allowed for income tax, resident tax, etc.

Hometown tax payment is also a type of donation deduction, and donations made by individuals to the Red Feather Community Chest are also eligible for donation deduction.

The amount to be deducted will be the lesser of the following amounts minus 2,000 yen.

If you are a salaried employee and do not use the one-stop tax payment system, you will need to file a final tax return in order to pay your hometown tax and receive a deduction for donations.

In addition, when filing a final tax return, you will need a receipt for the donation received from the organization to which it was donated.

Be sure to keep your receipt!

Disability deduction

The disability deduction is a deduction that is applied when the taxpayer, his or her living spouse, and dependents are disabled.

This also applies if you have dependents under the age of 16 who are not eligible for the dependent deduction.

The amount of deduction varies depending on the category of deductor, and you can receive a maximum deduction of 750,000 yen.

Widow deduction

The widow deduction is a deduction that applies to those who are divorced or widowed.

The conditions for the deduction are that the current status as of December 31st of the year does not apply to the single parent deduction;

If you have dependents after losing your husband and have a total income of less than 5 million yen,

Alternatively, this applies to people who have lost their husband and whose total income is less than 5 million yen.

Only women are eligible, but you can receive a flat deduction of 270,000 yen.

single parent deduction

The single parent deduction is a deduction that is applied when the taxpayer is a single parent.

This is a deduction that has been applied since 2020 (Reiwa 2). In this case, the single parent does not matter if the parent is male or female.

In principle, the scope of people eligible for the single parent deduction is based on the current situation as of December 31 of the year, and among certain people who are not married or whose spouse is not clearly alive or dead, and meet the following three requirements: This applies to all of the above.

Those who meet all the requirements will receive a flat deduction of 350,000 yen.

Working student deduction

The working student deduction is a deduction available to working students whose total annual income is 750,000 yen or less.

Students who meet the requirements for the working student deduction with employment income of 1.3 million yen or less, and whose income other than employment income is 100,000 yen or less, can receive this deduction.

The deduction amount is a flat rate of 270,000 yen.

spouse deduction

The spousal deduction is a deduction that is made if you have a spouse with an annual income of 480,000 yen or less (1,030,000 yen per year if it is only salary income).

Spousal deduction is a deduction that is applied if you have a spouse with an annual income of 48 yen or less.

The amount deducted from a taxpayer's income gradually decreases from 380,000 yen to 260,000 yen to 130,000 yen depending on the taxpayer's income.

Please note that if the taxpayer's own income exceeds 10 million yen, the spousal deduction cannot be applied.

Special spouse deduction

The special spousal deduction applies even if the spouse's annual income exceeds 480,000 yen and the spouse's annual income exceeds 480,000 yen and is not eligible for the spousal deduction. yen) or less, you can receive special spousal deduction.

The amount deducted from the taxpayer's income ranges from 380,000 yen to 10,000 yen, depending on the taxpayer's annual income and the spouse's annual income.

As with spousal income, if the taxpayer's own income exceeds 10 million yen, the special spousal deduction cannot be applied.

Dependent deduction

Dependent deduction is a deduction that is applied if you have a dependent family member.

Relatives eligible for the dependent deduction are those who are 16 years of age or older as of December 31st of the year, and the classification changes depending on their age.

The amount of deduction varies depending on the category of dependents, their age, and whether or not they live together, and is up to 630,000 yen.

What deductions cannot be taken at the time of year-end adjustment?

Finally, among the deductions mentioned earlier, the deductions that cannot be taken at the time of year-end adjustment are as follows.

By filing a tax return after completing the year-end adjustment, you can recover any overpaid income tax.

Income deduction is a system that takes into consideration each taxpayer's family circumstances and makes the tax burden fair.

However, medical expenses and donations are not always deductible.

Some items may not be deductible depending on the details, so please consult with the tax office when filing your final tax return.

Regarding hometown tax, those who can use the one-stop special system are:

You don't even need to file a tax return, so please check it yourself.

Also, although the mortgage deduction does not fall under the category of income deduction, it is a tax deduction that can be further deducted after applying the above income deduction.

You will need to file a final tax return in the first year to receive the mortgage deduction, but from the second year onwards you can complete the procedure together with the year-end adjustment.

summary

What do you think?

There are various deductions, and some can be easily received by simply preparing and filling out the documents at the time of year-end adjustment.

Make sure you understand the deductions you can receive and check them in advance so you can receive them without any loss!