Thank you for the incredibly detailed post. I am sure we all appreciate your laying out the numbers (though I have to admit I still find the details confusingTkydon wrote: ↑Thu Dec 23, 2021 9:59 am Please reread. I have made some edits.
The problem is that Residents' Taxes are derived from a very complex calculation for Taxable Income, after all deductions, and when you take the deduction it feeds back and increases the deductions, reduces the Taxable Income, reduces the National Taxes and Residents' Taxes, and so on.
The OP was asking how much more he could buy if he had some additional expected gross income that he could not guaranty would come in in time in this tax year.
The Marginal Gross Income would increase the Gross Residents' Taxes by 10% for Aggregate Method Taxable Income or 5% for Separate Method Taxable Capital Gain / Dividend Income, so the amount of that Gross Income that could be used for Marginal Furusato Nozei Purchases would be approximately:
Assuming he is at max before the additional income, then he could purchase additional 20% x 10% = 2% or 20% x 5% = 1% of the Additional Gross Income.
That's ¥20,000 / ¥1,800,000 = 1.11%TJKansai wrote: ↑Wed Dec 22, 2021 12:10 pm I plugged my estimated 2021 cap gains/distributions/dividends (all overseas) into the Furusato Choice calculator thinking I would be giving myself a nice fat allowance, but it only boosted mine by about ¥20,000.
Does this look right, or am I missing something?
1,800,000 x 5% (residence tax)=90,000 then 20% for Furusato=18,000
A large medical expense deduction could significantly reduce the Residents' Taxes and so significantly reduce the access to the Furusato Nozei Deduction.
).One more new situation for us is my wife has some overseas capital gains coming in at the end of the year. Not much, just about ¥500,000. What I am not sure about is whether that will go on my kakuteishinkoku or whether she will need her own. She has no income to speak of, and she is on my form as a dependent/spouse, so I am guessing we put it on my form in March (and get another ¥5,000 to spend on furusato).