A Review from Someone Who Was Shocked After Running the Year-End Tax Settlement Preview
Because I remembered having to pay a lot back last year, I ran the preview in November this time. The result wasn't as bad as I expected, but the reason was a bit anticlimactic.
These were the items I had missed.
- Monthly rent tax credit: You need to check eligibility based on the move-in report date. I thought I only needed the lease confirmation date.
- Medical expenses: Amounts reimbursed by indemnity insurance must be deducted. I didn't subtract this and lost out last year.
- Combined limit for pension savings + IRP is 9 million won. Even if you don't fill the IRP, pension savings alone can cover part of the bracket.
- Credit card vs. debit card ratio: The deduction only starts after you exceed 25% of your total salary, so before that, it's better to use them to meet card spending requirements.
- Dependent registration: For parents aged 60 or older, you must check the income requirement.
After running it, being able to adjust things in December was a big deal. Especially the card ratio and additional contributions to the pension account.
Conclusion: Rather than regretting it in January, it's better to run it once in November. It takes 30 minutes.
7 answers
Facts, it's the unwritten rule to run the preview in November.
I also just found out this time that the monthly rent tax credit is based on the move-in report date... I thought all you needed was the fixed date, but if the move-in date on the contract differs from the actual move-in date, it becomes a real headache ㅠ
A lot of people really don’t know about deducting indemnity insurance payouts from medical expenses, and last year I lost out because of it too. It’s confusing that you have to add up all the amounts you claimed through indemnity insurance and subtract them. But if you paid a hospital bill without going through indemnity insurance and just let it be, you don’t have to deduct it, so keep that in mind.
Well, the conclusion seems a bit exaggerated. Even if you run the preview, the only things you can adjust by December are things like card ratios or extra pension contributions; medical expenses or rent are already in the past, so there’s nothing you can do about them. The payoff for 30 minutes of effort seems to vary from person to person.
Even if your parents are 60 or older, they can’t be registered as dependents if they exceed the income requirement. But since siblings can register together and split the benefit, it’s not necessarily better to put it all on one person. If you ask Hometax support or the National Tax Service, they’ll tell you exactly.
30 minutes is all it takes lol. It took me two hours because I had to find each item one by one on Hometax.