There are a lot of inquiries about the year-end tax settlement for those who resign mid-year, did you know that if you don’t, you won’t be able to get a refund? You must file a global income tax return in May. Please see more details below.
Year-end Settlement – Mid-term resignation – If not – Refund – May – Report
index
What happens if I do not pay the year-end tax settlement for those who resign mid-year?
How to make year-end tax settlement for mid-term retirees
Basic year-end settlement: When the company retires
Additional deduction: Payment period for global income tax return in May 중도퇴사자 연말정산
How to issue a withholding tax receipt
Open the National Tax Service website
login 좋은뉴스
Submission details such as payment statement
Can I make year-end settlement of my expenses after retirement?
Credit cards, cash receipts, etc. are not allowed
Compare items that can be deducted after retirement
What happens if I do not pay the year-end tax settlement for those who resign mid-year?
If you do not make a year-end settlement, you will not receive a refund. So you need to know how.
Office workers do the year-end tax settlement on their own every year, but I think those who have resigned may have a lot of trouble because they don’t know how to do the year-end tax settlement.
I remember making the first year-end settlement after joining the company difficult, but in such a situation, it can only be more difficult. So, let me tell you in detail how the person who has resigned should do the year-end tax settlement.
How to make year-end tax settlement for mid-term retirees
Basic year-end settlement: When the company retires
When paying wages in the month of retirement
When the company pays the employee’s salary for the month of retirement, the year-end settlement is carried out in advance.
The withholding receipt for wage and salary income is issued in the following month.
For example, if you retire on June 20, you must pay your June salary in July and make year-end settlements, and issue a wage and salary withholding tax receipt by the end of August. This is absolutely necessary.
Only basic deductions apply
However, since the year has not yet ended, only basic deductions that do not reflect deduction data are applied to complete the year-end tax settlement. Therefore, you must take care of additional deductions such as insurance premiums, medical expenses, credit/debit cards, and cash receipts.
So, when will I be able to claim additional deductions for items that were not deducted at this time?
Additional deduction: Payment period for global income tax return in May
Additional deduction items can be directly reported during the global income tax return and payment period in May. To do this, you must have a receipt for withholding income from the employer you left.
Earned income withholding tax receipt required
Please file your income tax return after verifying the details through the wage and salary income withholding tax receipt and year-end tax settlement simplification service reported at your previous workplace.
How to issue a withholding tax receipt
Since the company electronically reports the pay stubs of workers, the details reported after March of the following year can be downloaded from Hometax.
Open the National Tax Service website
First, to use the year-end tax settlement preview service, click the shortcut to the National Tax Service website below to go to the relevant page.
Go to Hometax
login
First, you need to log in from above. There are several ways to authenticate yourself.
joint certificate
financial certificate
Private Certificates (KakaoTalk, Payco, Pass, Samsung Pass, KB Mobile Certificate)
Reference 👉 How to issue Kakao Pay certificate
Kakao Pay certificate issuance and PC login method A to Z (place of use, bank, password)
With the abolition of public certificates, interest in private certificates is drawing attention, and I will tell you about the most commonly used Kakao Pay certificate issuance and PC login methods. step by step
Submission details such as payment statement
After logging in to Hometax, you can get it from My Hometax ▶ Submission details such as payment statement. After the company’s payment statement submission deadline, it can be issued through the wage and salary statement.
Can I make year-end settlement of my expenses after retirement?
This is the first question that comes up during the year-end tax settlement of mid-term retirees. Can I get a deduction for my expenses after I quit my job?
Credit cards, cash receipts, etc. are not allowed
In conclusion, the year-end settlement deduction is only possible during the period of work provided. Because tax is only levied on wages earned during the period of service, the resulting deduction applies only to expenses incurred during the period of service.
Compare items that can be deducted after retirement
However, there are deductions that are not related to the length of service. It is good to separate them, please check the diagram below.
Only expenses incurred during the period of employment can be deducted Items that can be deducted regardless of the period of employment
Credit/debit card amount donation
Cash Receipt National Pension Insurance Premium
Insurance premium personal pension savings
Medical expenses pension savings account
Comprehensive investment in education expenses
Housing fund Small business, small business deduction installment
Comprehensive housing subscription savings monthly rent
In this way, we learned about the year-end settlement method for mid-term retirees.
In summary:
Basic year-end settlement is carried out by the company
Additional deductions are made directly by the employee during the global income tax period in May.
The withholding tax receipt is issued by the company or Hometax
Be sure to calculate the year-end tax settlement carefully and report it in May to receive a refund!