How are part-time income and taxes involved?

There are income tax and resident tax as taxes on income and income.

Under the Income Tax Law, part-time income is regarded as salary income and tax is calculated in the same way as ordinary salaried workers, but the remaining amount obtained by subtracting employment income deduction from salary income is the basic deduction (480,000 yen) In the following cases, income tax will not be levied.
In other words, the "minimum taxation" of salary earners in income tax is as follows.

(Deduction of employment income) 550,000 yen + (basic deduction) 480,000 yen = (minimum taxation) 1,030,000 yen

In the case of question, income tax is not levied because the amount of income is less than 1.03 million yen.

On the other hand, there is a "tax exemption system" for resident tax, and the limit is 450,000 yen in the case of Yokohama City. .
In other words, if the salary income is less than the sum of the salary deduction and the tax exemption limit (450,000 yen) (1 million yen), resident tax will not be levied.

(Deduction of salary income) 550,000 yen + (tax exemption limit) 450,000 yen = 1 million yen

In the case of question, residence tax is levied because the amount of income exceeds 1 million yen.
In this case, the residence tax will be levied the year following the year in which the income was earned, so in this case, it will be levied as the residence tax for 2023.

If your spouse's salary income is 480,000 yen or less (salary income is 1,030,000 yen) or less and your total income is 10 million yen or less, you can deduct both income tax and resident tax from your income Subject to deduction.
Your wife's income is 470,000 yen (salary income: 1,020,000 yen-salary income deduction: 550,000 yen), and your income is 3,560,000 yen (salary income: 5 million yen-salary income deduction: 1,440,000 yen) In calculating income tax and resident tax.

Special spouse deductions are not applied to spouses whose part-time income exceeds 1,030,000 yen and the deduction is drastically changed, and taking into account the spouse's contribution to income earning, It was established by the tax reform in September 1987 and was reviewed by the tax reform in 2018.
The application of this special deduction is required that the total income of the person receiving the deduction must be less than 10 million yen, as with the conditions for applying the spouse deduction.
Your wife's part-time income during 2022 is 1.02 million yen and your salary income is 5 million yen, so the spouse deduction will be applied to the income tax for 2022 and the residence tax for 2023.
※　If a taxpayer whose previous year's income is only salary and whose total income exceeds 10 million yen has a spouse who has no income to make a living, a taxpayer or spouse must file a personal municipal tax. May be. For more information, please contact Tax Division City Tax Section in your district.

If you have any questions, please contact each ward office.