Office workers are bound to be very interested in the second bonus, year-end tax settlement. Usually, people only get interested when there is a notice from the company asking them to submit year-end tax settlement documents. However, there are many things you cannot receive if you do not prepare in advance. Let’s find out what we need to prepare to receive the second bonus.
Hometax year-end settlement preview
Many office workers have probably never seen the screen above. This is because a notice usually appears in February 2024 asking the company to submit settlement documents through the year-end tax settlement simplification service. You can get tax information in advance by going to the National Tax Service’s Home Tax website. If you follow the steps above, you can know the expected tax amount in advance.
1. Calculate credit card income deduction amount
In the preview of the 2024 Home Tax year-end tax settlement, you can also check the deduction amount according to the amount used, such as credit cards. Data will be loaded until the third quarter. You can enter your own usage amount for the fourth quarter. Since December is not over yet, you can write down the estimated amount taking into account the amount spent so far.
Credit card year-end tax deductions can be made starting from amounts exceeding 25% of income. The income deduction limit for year-end tax settlement is 3 million won for those with an annual income of 70 million won or less, 2.5 million won for those with an annual income of 70 to 120 million won, and 2 million won for those with an annual income exceeding 120 million won. You can receive an additional income deduction of 3 million won for the amount spent at traditional markets and public transportation.
To put it simply, a worker with an annual income of 100 million won is recognized only for card usage exceeding 25 million won, and the income deduction rate is 15% for credit cards and 30% for checks, debits, and cash receipts. If possible, use checks, debits, and cash receipts.
2. Enter the tax deduction screen
Year-end tax deduction items include pension accounts, children, education expenses, donations, and monthly rent. Starting this year, three additional items have been added: hometown love donation, CSAT test fee and college admission fee, and labor union fee.
The tax deduction limit for pension account year-end settlement was increased by 2 million won from 7 million won in the previous year to 9 million won. Those with an annual salary of 55 million won or less can receive a 16.5% deduction rate when paying 9 million won. In my case, I deposited 7.8 million won and plan to check whether an additional payment of 1.2 million won is possible.
3. Check the 2024 Hometax year-end tax settlement preview summary.
If you look at the summary, which is the last step, you can find out in advance whether you can get a tax refund or whether you have to pay additional taxes. There is still time left in December, so you need to figure out what data you need to receive a refund. It is not a good idea to buy things you do not need. Since the pension account deduction limit has been increased, it is recommended to increase the deposit amount to the limit to prepare for retirement.