As the year-end tax settlement season approaches, everyone has a headache over taxes. Many people miss out on benefits because they don’t know what and how much they can deduct. In particular, some people may be wondering how much of a refund they will receive in the new year or how much additional payment they will have to make. In this article, we will provide tax-saving tips along with the year-end tax settlement preview service. Through this, prepare for the year-end tax settlement in advance and thoroughly take advantage of deduction benefits that are easy to miss!
2025 Year-end Tax Settlement Preview
2025 Year-end Tax Settlement Preview
The year-end tax settlement preview service, which will start on November 15, is a service provided by the National Tax Service. Through this service, you can calculate the expected tax for next year in advance based on your credit card usage from January to September of this year.
In particular, a customized guidance function has been added for those who have never received a tax deduction, so you can easily check information on complex deduction items. For example, you can receive detailed information on various deduction items such as housing subscription savings and monthly rent deduction, as well as required documents.
Go directly to the year-end tax settlement preview
How to use the year-end tax settlement preview for tax savings
1. Calculate credit card income deduction
First, you can calculate the tax amount you can receive through the credit card income deduction in advance. In this step, the calculation is based on the credit card usage history from January to September of this year, and you can estimate the deductible amount by entering the expected expenditure after October.
The deduction standard is applied when the credit card usage exceeds 25% of the annual salary. The deduction rate varies depending on the payment method used, with a higher deduction rate of 15% for credit cards, 30% for check cards or cash receipts, and 40% for traditional markets or public transportation.
TIP: If the credit card usage exceeds 25% of the salary, it is more advantageous to use a check card or cash receipt for subsequent expenditures for tax savings. Since the deduction rate is higher for amounts spent at traditional markets, you can receive additional benefits, so take advantage of it.
2. Calculate the expected tax amount
You can calculate next year’s tax in advance through the year-end tax settlement preview service. This is to find out the expected tax amount in advance by reflecting the change in annual salary, increase or decrease in the number of dependents, and various deduction items. For example, if your annual salary increased this year, the expected tax burden may also increase, and the additional payment amount or refund amount will be determined accordingly.
There is also a customized guidance service that has been newly added this year, which provides detailed information on the benefits of each item, such as housing mortgage loan, monthly rent, and donation deductions. In particular, the monthly rent tax deduction and donation deduction have been expanded from this year, so make sure not to miss them.
3. Select savings and deduction items
It is important to select savings and deduction items carefully when previewing the year-end settlement for tax savings. Representative examples include housing subscription savings and pension savings, each of which has great benefits.
Housing subscription savings: In the case of workers without a home, you can receive an income deduction of up to 40% of the annual payment amount. In particular, housing subscription is a useful deduction item for those who are planning to purchase their own home in the long term. Pension savings: You can receive a tax deduction for the annual payment, and if your total salary exceeds 55 million won, the deduction rate is 12%. However, since pension savings require repayment of the deducted amount upon early withdrawal, it is advantageous to use them in the long term.
TIP: If you are wondering where to put your savings, pension accounts have a greater tax-saving effect because the refund amount is larger as a tax deduction than as an income deduction. However, since you must repay the tax refunded amount upon early termination, consider using them in the long term.
Summary of year-end tax settlement preview service
Classification
Credit card income deduction Deduction possible when it exceeds 25% of total salary. Credit card 15%, check card and cash receipt 30%, traditional market and public transportation 40%
Estimated tax calculation Tax can be predicted based on changes in annual salary and number of dependents
Savings and deduction items 40% income deduction for housing subscription savings, up to 12% tax deduction for pension savings
FAQ 5 frequently asked questions
Q1. Where can I use the year-end tax settlement preview service?
You can use the year-end tax settlement preview service on the National Tax Service Hometax. For more information and application, please visit the National Tax Service Hometax.
Q2. What happens if the deduction limit is exceeded?
There is a certain limit for both income deductions and tax deductions, and if the amount exceeds this limit, the excess amount will not be deducted.
Q3. What deduction items were added this year?
This year, the monthly rent deduction and donation deduction have been expanded, and a customized guidance service has also been added.
Q4. What deduction items should I use if my income is low?
It is recommended to maximize tax deductions through housing subscription savings and pension savings.
Q5. Can the year-end tax settlement preview service differ from the actual tax amount?
Please use it as a rough reference as some tax law revisions have not been reflected.
Good information to read together
Application period and requirements after the deadline for the employment incentive (until December 2)
Did you forget to apply for the employment incentive and childcare incentive? Don’t worry even if you accidentally missed the application period. This year, you can apply after the deadline of December 2nd. Through this article, you can learn about the application period, eligibility, method, and
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In conclusion
The year-end tax settlement preview service is a great opportunity to understand your tax burden in advance and enjoy the deduction benefits to the fullest. Use your credit card usage history and savings items to establish a good tax-saving strategy until the end of the year.