It’s tax season again - nobody likes that. Here’s Joseph Kim, though, with some tips on how to maximize your refund, or at least minimize what you pay.



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Larger deductions for bigger donations

You can now file tax returns to receive tax refunds earned over the year of 2016.

The National Tax Service launched its online service on January 15th, which allows users to claim tax deductions, including insurance fees, medical costs, and education expenses.

Beginning this year, large donations qualify for greater deductions.

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The criteria for deductions of large donations has been lowered to 20 million won from 30 million won and the tax deduction rate has been increased to 30 percent from 25 percent.

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The tax deduction rate for employees of small and medium sized enterprises has increased.

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The tax deduction rate for SME employees used to be 50 percent of their annual income. But workers at SMEs who were employed after January 1st, 2016 will have 70 percent of their annual income deducted.

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However, refunds are limited to 1.5 million won in the category to prevent high income earners from benefitting from the policy.

Paper receipts will still be required for categories not listed online, such as the costs incurred to buy the handicap aids, glasses, contact lenses, school uniforms or private education for preschoolers.

INTERVIEW
Gang Gi-deok / Tax inspector, Jeju Tax Office
Paper receipts are required for categories not listed online, such as the costs incurred in buying glasses or school uniforms.
<인터뷰 : 강기덕/제주세무서 법인납세과 조사관>
"증빙서류 발급기관에서 국세청에 제출되지 않는 자료는 연말정산간소화서비스를 통해 조회가 되지 않습니다. 예를 들면 안경 구입비용, 교복구입 비용 등이
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있는데 공제받으시려면 근로자분이 직접 해당 영수증 발급기관에 가서… "

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Monthly rent payments deductible

If a wage earner pays monthly rent, he or she should make sure that the amount of monthly rent is applied for tax deduction.

If a worker whose annual income does not exceed 70 million won rents a house not larger than 85 square meters, the worker can have 10 percent of the rent go towards their deduction.

From the NTS’s Hometax website, taxpayers can view details on credit card usage, recorded cash transactions, insurance fees, medical costs and other information for the year 2016.

[Reporter] Joseph Kim
[Camera] Hyeon Gwang-hoon

Taxpayers can visit the NTS Hometax website, download its application onto their smartphones, or call the Jeju Tax Office for tips to save on income tax and inquiries about the tax refund policy.

Joseph Kim, KCTV