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Year End Adjustment - 年末調整

Posted: Fri Jan 11, 2019 2:36 am
by OkiBum
I am a full time employee therefore my taxes are withheld from my salary automatically. My wife on the other hand was a dependent until September. October on wards, she joined a full-time position and is enrolled on the shakai-hoken.

With my December salary, I also got my year end adjustments done, and usually this amount is negative figure (you get money back), however this year I had to pay more. I asked the HR if this was a mistake and was told that they need to check with the Tax Office.

Of course, the reply from the tax office was that it is a complicated calculation process but the amount is correct and not an error.

I am wondering if this has anything to do with my wife starting a full-time position? Has anyone faced a similar situation where you had to pay an additional amount during your year-end adjustment?

I'm just curious to know what the reason is....

Thanks in advance.

Re: Year End Adjustment - 年末調整

Posted: Fri Jan 11, 2019 4:50 am
by RetireJapan
Well, you get a tax deduction for having a dependant, so I guess once you don't have the dependant any more you'd also lose the tax deduction and your numbers might be adjusted?

Re: Year End Adjustment - 年末調整

Posted: Sun Jan 13, 2019 8:43 pm
by TokyoWart
The rule on spousal deductions changed starting January 1st of 2019. If your income is above 12,200,000 yen you have lost the ability to claim the spousal deduction. Alternatively is she earned more than 2,010,000 yen during those few months she can no longer qualify as a deduction:

https://ufe-japon.org/wp-content/upload ... 1-2017.pdf