From the 27th, National Tax Service Hometax Year-end Tax Settlement Estimated Tax Amount Check Available
Year-end Tax Settlement Simplification Data Bulk Provision Service for All Citizens
If You Are a Multi-jobber as a Freelancer and Wage Earner, You Must File Twice
[Asia Economy Intern Reporter Lee Gyehwa] Year-end tax settlement is a process that office workers often experience, but there are always confusing aspects each time. The year-end tax settlement is a procedure to verify whether the income tax based on the previous year's earned income tax was paid appropriately relative to income. If the tax paid was more or less than the amount originally owed, detailed information can be checked through the year-end tax settlement refund inquiry.
From the 27th, the National Tax Service's Hometax allows users to check the estimated year-end tax amount in advance. The year-end tax settlement preview service calculates the estimated tax amount based on credit card and other usage amounts from January to September. By using the preview service, you can check the tax savings for this year in advance. For dual-income couples, it can also help determine which spouse should claim the dependent family expenses for better deductions. However, since this is a simulated calculation of the year-end tax settlement refund inquiry, there may be some differences from the actual refund amount.
Starting this year, customized guidance on easily overlooked deduction items such as monthly rent tax credit, education expense tax credit, and small business employee reductions will be provided to 330,000 workers in their 20s and 30s.
The target for this guidance is young workers who are presumed to meet the income and tax deduction requirements but did not receive the deduction benefits during the actual year-end tax settlement. For them, the year-end tax settlement preview service will individually provide information on deduction requirements and tax benefits, and a smartphone notification service will be supported through mobile Sontax.
The National Tax Service will expand the simplified data batch provision service for year-end tax settlement to the entire population starting this year. The simplified data batch provision service is a service where the National Tax Service provides year-end tax settlement data of workers to companies on their behalf. This means workers no longer need to download simplified data themselves and submit it to their companies as before.
Companies wishing to use the simplified data batch provision service must register the list of year-end tax settlement target workers on Hometax. The registration period is from today until November 30. If it is unavoidable to add or delete names or if registration is not completed within the deadline, modifications or new registrations can be made until January 14 of next year.
The National Tax Service provides simplified data only for workers who have consented. Workers must consent at least once to data provision on Hometax (Sontax) from December 1 to January 19 of the following year. The simplified data of workers who have completed data provision confirmation will be provided sequentially to companies in a PDF compressed file starting January 21 of next year.
In this case, workers only need to submit supporting documents to the company if there are additional items beyond the simplified data. Simplified data that workers do not want to provide to the company can also be deleted personally.
If an earned income worker is also a freelancer and an N-jobber, they must file twice. Usually, the N-job standard refers to having dual income. This may apply to freelancers, those who work at a company while running a personal business, or those who changed jobs within the year.
Tax filing is done once at the company where the worker is employed and once more during the comprehensive income tax filing period in May by combining freelancer income. Another method is to receive a copy of the earned income withholding receipt from one workplace, combine the earned income, and report it to the company handling the year-end tax settlement.
While calculating the year-end tax settlement, there may be cases of duplicate reporting or missing reporting. In such cases, comprehensive income tax filing can be done in May of the following year. Additionally, cases such as mid-year resignation, failure to combine income from previous workplaces in the year-end tax settlement, and N-jobbers who have earned income and other comprehensive income that must be combined can all be settled during the May comprehensive income tax filing period. Although missed year-end tax settlements can be done during this period, failure to do so may result in penalties for late or inaccurate filing, so caution is advised.
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