As we approach the end of the year, many employees start to worry about their year-end tax settlement. Usefully, the National Tax Service (NTS) announced the launch of its ‘Year-End Tax Settlement Preview Service’ starting from November 15th, 2024. This service allows you to calculate your estimated tax amount in advance and provides custom tips to maximize your tax savings.
Anticipate Your Year-End Tax Settlement
Using this service, you can calculate your expected tax for the next year based on the result of the previous year’s tax settlement and this year’s credit card usage from January to September.
You can also check for any changes in personal deductions due to changes in income and dependents, as well as increases or decreases in credit card and medical expense deductions. The service provides key tips on saving tax and avoiding excessive deductions.
Major Tax Saving Tips
Below are some key tips provided by the service:
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Calculate Income Deductions from Credit Card Usage: If total credit card usage exceeds 25% of your salary, you are encouraged to actively use debit cards or cash receipts when paying in cash. You can also increase your tax deduction benefits by increasing your spending in traditional markets.
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Calculate Estimated Amount: You can strategize your tax savings by inputting planned amounts for tax deduction items such as housing subscription, pension savings, and calculating the deduction amount in advance.
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Tax Saving Tips and Cautions: Check the trends of total wages, deduction amounts, and tax determined over the past three years and the savings tips for each deduction item, and take note of cautionary points to prevent excessive deductions.
Custom Service for Difficult Year-End Tax Settlement
The NTS also provides a personalized guide for those who find it challenging to make a year-end tax settlement. Through an analysis of the tax settlement history and data, the NTS pre-selected about 430,000 workers who have never received deductions but are highly likely to meet the dedication requirements. They will then provide an advance guide on the necessary proof documents for each condition and benefit.
Frequently Asked Questions (FAQ)
Here are some of the common questions about the Year-End Tax Settlement Preview Service:
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Q1: Why isn’t the marriage tax deduction applied in the preview, although it was introduced this year?
- A1: The marriage tax deduction, increased deductions for increased credit card consumption and traditional market usage are not reflected in this service as the revision has not been finalized yet.
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Q2: Can it be refunded at the end of next year according to the calculated preview results?
- A2: The preview service is based on the deducted amount reported in last year’s tax settlement. The actual result may vary depending on the expenditure at the end of November and changes in wages.
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Q3: Is it possible to deduct income and tax deduction items that received personalized guidance when making a year-end tax settlement?
- A3: Although personalized guidance targets are selected through detailed data analysis, there is a time difference between the analysis and the time of the year-end tax settlement. So, you should carefully check whether the requirements are met at the end of the year (December 31) for the actual year-end tax settlement, and apply for income deduction and tax deduction.
Disclaimer : This content is a translation of material originally published in Korean by the National Tax Service of the Republic of Korea. While efforts have been made to ensure accuracy, this translation is provided for informational purposes only and does not carry legal weight. In the event of any discrepancy, the original Korean version shall prevail. Users should consult the official Korean documents for precise interpretation. This translation does not constitute legal advice. The translators and publishers shall not be held liable for any loss arising from reliance on this translation.