The way we work, the way we love, the way we live, everything is different now in Reiwa. Experts in various fields will answer the "new money hacks" behind the countless changes. The respondent this time is FP (Financial Planner) Harumi Maruyama.
What kind of insurance premiums and taxes are deducted from the pay slip, "face value"?
I think that everyone who works as a company employee receives a "salary slip" every month. Basically , there is a "face value" from which nothing is deducted from the payslip, and social insurance premiums and taxes are deducted from that and transferred . So what exactly is being drawn?
The first is social insurance . Social insurance premiums include welfare annuity insurance premiums, health insurance premiums, long-term care insurance premiums for those aged 40, and employment insurance premiums.
Taxes deducted from salary are income tax and resident tax .
However, regarding resident tax, if a new graduate has no income until then, it will be deducted from June of the following year, so it is good to keep in mind that there are cases where it is not deducted.
You can save income tax and resident tax
Now, what part of tax can be saved from here is "income tax" and "inhabitant tax" . Hometown tax is one way for company employees to save tax . Another method is to have the excess or deficiency of income tax settled at the end of the year adjustment and receive a refund . At that time, if there is a shortage, the shortage will be collected.
Hometown tax payment = donation deduction
Hometown tax is "donation deduction". There is a copayment amount of 2,000 yen, and the feature is that there is an upper limit according to income.
No year-end adjustment required. If you file a final tax return or apply using the "one-stop exception system" that can be used within 5 local governments, it will be reflected in the next year's resident tax. It indirectly leads to tax saving in the sense that part of the inhabitant tax that you originally planned to pay will be returned as a gift.
▼ Click here for the basics of hometown tax
Hard to hear now... What is hometown tax in the first place?
What other deductions are available?
Money returned when you file a tax return
If you have incurred medical expenses of 100,000 yen or more per year (*), you can receive a refund by filing a tax return for medical expense deductions . For smaller amounts, you can claim a medical expense deduction under the self-medication tax system .
*If your gross income is 2 million yen or less, medical expenses exceeding 5% of your gross income will be deducted.
Money returned by year-end tax adjustment or tax return
Medical expense deductions can be reimbursed by filing a final tax return, but there are also deductions that can be deducted by submitting them at the time of the year-end tax adjustment.
“Life insurance premium deduction” is one of income deductions. In the case of the new system, there are three types of deductions: “general life insurance premium deduction”, “long-term care insurance medical deduction”, and “individual annuity insurance premium deduction”. A fixed amount will be deducted from your income for the year according to the premiums you have paid. Each deduction is capped at 40,000 yen, and three deductions will result in a maximum of 120,000 yen. Resident tax is 70,000 yen with a maximum of 3.
The maximum deduction for earthquake insurance premiums is 50,000 yen for income tax and 25,000 yen for resident tax. The amount varies depending on the insurance premium, so why not check how much your upper limit will be?
And iDeCo, one of the private pension schemes , can also help you save tax. There is an upper limit to the amount of monthly contributions, but all contributions are subject to income deduction .
▼ Click here for basic knowledge of iDeCo
I can't hear you anymore! Fundamentals of Tsumitate NISA and iDeCo
Also, if you have purchased a home, get a refund on the mortgage deduction . In the first year, you are required to file a tax return, but from the second year onwards, all you have to do is fill in the balance certificate sent by the financial institution and the application form to make year-end adjustments. The deduction period and amount will change depending on the borrowing year and housing performance, so it is recommended to check it.
Please keep the papers related to the deduction securely!
However, in order to receive these refunds, it is a major premise that there is income . In addition, you will need to submit papers related to deductions at the end of the year tax adjustment and when filing your tax return, so keep the various payment certificates that you receive mainly from summer to autumn so as not to lose them! If you lose it, it can be reissued, but depending on the situation, you may not be able to make it in time for the year-end tax adjustment.
iDeCo has a great impact and is recommended
I've introduced a lot so far, but when there are various deductions, you don't know what to start with.
Among these, iDeCo can be said to be extremely effective for office workers . In the case of a company that does not have a corporate-type pension, there is an upper limit of 23,000 yen. increase.
Start tax saving while you are young
Although the upper limit is set, it is important to make good use of the tax incentive system that is part of the national system from a young age! Over the long term, it will add up to something big.
Originally, it was your own money, but the money you get back at the end of the year adjustment is said to be a "petit bonus" that you get back when you forget about it, so please take advantage of it and save tax well.