Declaring healthcare costs at the tax office (newbie questions)

[AreTheyTheLemmings?]

You will need to submit all the receipts, so start scanning/photocopying them now.

So do I need to hand over all my physical receipts? Or are copies okay? Or do I just need to bring them to show they are legit but not actually hand over?
Or can I just copy the summaries that I get every month?

Not sure of the precise requirements. I submit the originals.
Make copies of the receipts and summary statements, and you'll be prepared for all eventualities.

[Tkydon]

In my case I always take the wad of receipts, they take a quick glance, keep the list and give the receipts back to me, and tell me that I need to keep them for 5 years, in case they decide to do an audit.

[KCLenny]

Is there anyway to do this online? I’ve just really not had the time to go to the tax office due to covering shifts for other staff etc.
if I can do it online, can anyone both point me in the right direction and give advice on how to do it/what is necessary please?

[Tkydon]

Yes, you can do this on e-Tax.

https://www.e-tax.nta.go.jp/kojin.html
https://www.keisan.nta.go.jp/kyoutu/ky/sm/top#bsctrl
https://www.keisan.nta.go.jp/r3/syotoku ... =21#bbctrl

There's an English Guide to using the e-Tax site

https://www.nta.go.jp/taxes/shiraberu/s ... df/061.pdf


Send the list of all medical expenses

https://www.keisan.nta.go.jp/r3/syotoku ... =21#bbctrl

You can only Claim as a Deduction Medical Expenses over Y100,000
If you add all the Medical Expenses together and they come to less than Y100,000, you can't claim anything. Don't waste your time.
If you add all the Medical Expenses together and they come to more than Y100,000, you can claim the amount minus Y100,000 as a deduction.

e.g. If you add all the Medical Expenses together and they come to say Y120,000, you can claim Y120,000 minus Y100,000 = Y20,000 as a deduction.
Therefore you will achieve a Tax Saving of Y20,000 x (Marginal Tax Rate + Reconstruction Tax rate)

Income Tax Rates 総所得金額の合計、復興特別所得税、住民税の税率
Band Marginal Tax Rate National% Reconstruction% = Total% = Tax Saving
Under 1,949,000 5% 0.105% = 5.105% = Y1,021
1,950,000 3,299,000 10% 0.21% = 10.21% = Y2,042
3,300,000 6,949,000 20% 0.42% = 20.42% = Y4,084
6,950,000 8,999,000 23% 0.483% = 23.483% = Y4,656
9,000,000 17,999,000 33% 0.693% = 33.693% = Y6,738
18,000,000 39,999,000 40% 0.84% = 40.84% = Y8,168
Over 40,000,000 45% 0.945% = 45.945% = Y9,189


plus Y20,000 x 10% Residents' Tax Rate = Y2,000

So, if the amount is very small, you might want to consider whether it is worth your time to do all the typing into the spreadsheet and filing, etc..


Forms also available here:

https://www.nta.go.jp/taxes/shiraberu/s ... /ref1.xlsx
https://www.nta.go.jp/taxes/shiraberu/s ... f/ref1.pdf
https://www.nta.go.jp/taxes/shiraberu/s ... f/ref3.pdf

https://www.nta.go.jp/taxes/shiraberu/s ... ki/016.pdf
https://www.nta.go.jp/taxes/shiraberu/s ... f/ref4.pdf


You need to keep all the Receipts for 5 years, in case they want to inspect them.

[KCLenny]

Thanks for the links.
This system is an absolute mess. Even with the guide I had no idea what I was supposed to be doing 90% of the time.
As such I am curious about the outcome. I haven’t fully submitted everything, but have gone through a part of it for the medical expenses deduction, it said amount to be refunded was only about ¥3300. That seems awfully low. My income was about ¥2.8 mil last year, and the medical expenses were around ¥158,000. No other income.
Is that really is for a refund? Or am I missing something? Or do I need to continue through the application to get more info?

Edit, going by the calculations in the above post, I should be getting closer to ¥11,000. So what gives?

[KCLenny]

You can only Claim as a Deduction Medical Expenses over Y100,000
If you add all the Medical Expenses together and they come to less than Y100,000, you can't claim anything. Don't waste your time.
If you add all the Medical Expenses together and they come to more than Y100,000, you can claim the amount minus Y100,000 as a deduction.

e.g. If you add all the Medical Expenses together and they come to say Y120,000, you can claim Y120,000 minus Y100,000 = Y20,000 as a deduction.
Therefore you will achieve a Tax Saving of Y20,000 x (Marginal Tax Rate + Reconstruction Tax rate)

Income Tax Rates 総所得金額の合計、復興特別所得税、住民税の税率
Band Marginal Tax Rate National% Reconstruction% = Total% = Tax Saving
Under 1,949,000 5% 0.105% = 5.105% = Y1,021
1,950,000 3,299,000 10% 0.21% = 10.21% = Y2,042
3,300,000 6,949,000 20% 0.42% = 20.42% = Y4,084
6,950,000 8,999,000 23% 0.483% = 23.483% = Y4,656
9,000,000 17,999,000 33% 0.693% = 33.693% = Y6,738
18,000,000 39,999,000 40% 0.84% = 40.84% = Y8,168
Over 40,000,000 45% 0.945% = 45.945% = Y9,189


plus Y20,000 x 10% Residents' Tax Rate = Y2,000

So, if the amount is very small, you might want to consider whether it is worth your time to do all the typing into the spreadsheet and filing, etc..
Yes, you can do this on e-Tax.

Wait so let me get this straight, if you earn a low income, you get naff all refund/deduction, but if you earn more money you get a bigger refund? How the hell is that fair?

[Beaglehound]

Your marginal tax rate on that income amount will be 5%, so on expenses of 158k, your refund should come to 5% of 58k, so 2900 yen. It is refunding the tax percentage you have paid, so if you had earned more and paid 10% on some of your income, the refund amount would have been 10% of 58k. So not unfair in this case.

You will also benefit in reduced resident tax and health insurance payments as a result of the 58k reduction in taxable income, around 10% for each.