Frequently Asked Questions (FAQ) about year end tax for 2023

Deduction related

Question I purchased a house this year. What should I do?
Answer  In order to be eligible for the total housing loan deduction, you must file an income tax return for the first year you acquired the house at the tax office (if you purchased the house in 2023, you must file the income tax return in February 2024 or later).
Starting with the next year end tax adjustment (for the year 2024), it is possible to file a tax return for the total housing loan deduction, etc. together with the tax return through YTA wizard of Workcloud.
Note: Please contact the tax office directly for specific procedures for filing a tax return.
(Period of tax return: February 16, 2024 to March 15, 2024   Filing location: Tax Department under its jurisdiction)

Question Can I claim the housing deduction through the year end tax adjustment?
Answer You can do this with it after the second year of acquiring the home (the first year must be done through a tax return).

Question What additional documents are required for the housing deduction?
Answer Original document(s) that records the outstanding balance of your loan,
issued by your housing loan agency or bank. Original form to claim housing purchase deductions, issued by Tax Office (the page for 2023)
Note: If you are using more than one organization to obtain your loan, please submit all the documents from each.

Question How can I receive the necessary documents for the housing deduction?
Answer The forms to claim housing purchase deductions are usually mailed to you directly from your tax office after filing your final tax return in the following year of purchasing a house. In the case you have not received them, please ask for them at your local tax office.
Note: “Housing loans special exemption certificate" is the format of certificate issued after June 2012 and the version of before June 2012 is different. The certificate issued after June 2012, can also be used as the declaration form.

Question   What documents are required to be submitted if my spouse or dependent outside of Japan for the deduction?
Answer You need "Proof of family relationship" and "Proof of money transfer."
Note: For more information, please click here.

Question  What documents are required to be submitted if a spouse or dependent subject to the exemption is a person with disabilities?
Answer You need "Photo copy of booklet for the disability."

Question Where do I enter the deduction for medical expenses in the Year end tax adjustment Wizard?
Answer  You cannot file a medical expense deduction through year end tax adjustment. To be eligible for the medical expense deduction, you must file an income tax return.

I joined the company in the middle of this year. I had income from my previous company until the middle of this year, what documents do I need to submit?
Answer  Those who have income from a previous company up to the middle of this year and have not yet submitted the "Compensation details for the Year 2023" from the previous company must submit it in the year end tax adjustment.
Note: Those with “乙(Otsu)” classification will not be eligible for year end tax adjustment. You will need to file tax return.

Question Do I need to submit or request for a certificate for the company's DC (corporate defined contribution) and matching contributions?
Answer No submission or request is required.

Question What should I do if my small-medium enterprise (SME) mutual insurance premiums (company pension plan /individual pension plan, etc.) are paid from October of this year?
Answer As soon as you receive your certificate, you must submit it. If you submit it late, you must do so with your tax return.

Question I joined the company in the middle of this year. I had a company's DC (corporate defined contribution) at my previous company, but my current company does not have one, so I transferred to an individual pension subscriber premiums. In that case, what should I do about the year end tax adjustment?
Answer For individual pension subscriber premiums, a "Certificate of Payment of Premiums for Small-scale Enterprise Mutual Aid, etc. (小規模企業等掛金払込証明書)" issued by the National Pension Fund Association is required. Please declare the amount shown on the certificate.

Question What is the alternative to a certificate of deduction for social insurance premiums (national pension)?
Answer ATM payment slips and receipts for payments made at convenience stores, etc. can be substituted.

Question How can I deduct "hometown tax payment (ふるさと納税)"?
Answer You must file a tax return, as you cannot take deductions through year end tax adjustment.
Note:  If your hometown tax payment is within 5 municipalities and you have applied for the "One-Stop Special Exception System (ワンストップ特例制度)," you do not need to file an income tax return.



Question What if I want to include my spouse as my tax dependent next year, but his/her expected income is unknown?
Answer If you cannot anticipate any income at this time, enter "0".
Please note that from next year onward, if your spouse's total income exceeds "480,000 yen" ("1,030,000 yen" for salary income only), he/she must be removed from your tax dependent.

Question I have group insurance. How do I make a year end tax adjustment?
Answer The group insurance already reflects the amount, so there is no need for you to enter it.
If your company has the certificate, it does not need to be submitted by you. However, if you have the certificate, please submit it.

Question Do I need to enter the resident tax in the year end tax adjustment?
Answer Resident tax is not handled for year end tax adjustments and should not be entered.

Question  I plan to file a tax return/blue return. Do I need to complete the year end tax adjustment wizard?
Answer  Please complete the year end tax adjustment wizard for the portion paid as salary by your company, as a year end tax adjustment is required. After that you should also file your tax return/blue tax return.

Question  My income this year is over 20.000.000. Do I need to apply for the year end tax adjustment wizard?
Answer Please be sure to complete the year end tax adjustment wizard. If your income exceeds 20 million yen, you do not need to file a claim for deduction for insurance premiums or the total housing loan deduction (corresponding to your tax return) since they are not subject to the year end tax adjustment calculation, but by completing the year end tax adjustment wizard, you will be required to submit a dependents tax (扶養控除申告書) for current and next year.


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