How is your father's tax treatment against pension?

Calculation of dependent deductions and tax amount
Public pension, such as Employee Pension Plan (Kosei Nenkin), is subject to tax as miscellaneous income under tax law, but the amount of income is calculated by deducting the following deductions for public pensions from the amount paid by pension.

(Note) If the total amount of income pertaining to non-miscellaneous income pertaining to public pension, etc. exceeds 10 million yen, the calculation method differs. For details, please refer to necessary expenses (salary income deduction, public pension deduction, income adjustment deduction, etc.) (after taxation in 2021).

Therefore, the miscellaneous income amount of your father is
2.2 million yen (pension income) - 1.1 million yen (deductions for public pensions) = 1.1 million yen (miscellaneous income)
It will be.

Deductions for dependents
First of all, whether or not your father is eligible for dependent deduction, the income tax for 2023 imposed on income during 2023 and the municipal tax and prefectural tax for 2024 are subject to dependent deduction because both income requirements are less than 480,000 yen (1.58 million yen for those aged 65 or older who receive pension).

Next, regarding my father's tax treatment for pension during 2023, the tax amount is calculated by multiplying the amount obtained by subtracting the income deduction such as basic deduction from the income amount by the tax rate, so it is as follows.

Income tax: For 2023
Income tax rate (taxable income amount of 1.95 million yen) is calculated by subtracting social insurance premiums (150,000 yen) and basic deductions (480,000 yen) from father's (miscellaneous) income amount of 1.1 million yen, plus the special income tax for reconstruction (2.1%).
{1.1 million yen-(150,000 yen + 480,000 yen)} x 5% x 102.1% = 23,900 yen　※Rounded down to less than 100 yen
It will be.

[Municipal tax, prefectural tax, forest environmental tax: FY2024]
Resident tax rate (municipal tax 8%) is calculated by subtracting social insurance premiums (150,000 yen) and basic deductions (430,000 yen) from father's (miscellaneous) income of 1.1 million yen.・ We multiply by prefectural tax 2.025%, deduct adjustment deduction, reduce fixed amount tax, add per capita rate and forest environmental tax and calculate.
Municipal tax income percent (before deduction) 520,000 yen x 8% = 41,600 yen
Prefectural tax income percent (before deduction) 520,000 yen x 2.025% = 10,530 yen
Municipal tax income percent (after deduction) 41,600 yen-2,000 yen (adjustment deduction) = 39,600 yen
Prefectural tax income percent (after deduction) 10,530 yen-500 yen (adjustment deduction) = 10,030 yen
Fixed amount tax reduction (only for the individual) 10,000 yen
Prefectural tax fixed amount tax reduction of 10,000 yen x {10,030 yen / (10,030 yen + 39,600 yen)} = 2,021 yen　※Rounded up to less than 1 yen
Municipal tax fixed amount tax reduction 10,000 yen-2,021 yen = 7,979 yen
After fixed amount tax reduction Municipal tax income percent 39,600 yen-7,979 yen = 31,621 yen → 31,600 yen　※Rounded down to less than 100 yen
After fixed tax reduction prefectural tax income percent 10,030 yen-2,021 yen = 8,009 yen → 8,000 yen　※Rounded down to less than 100 yen
Municipal tax 31,600 yen (income rate) + 3,900 yen (per capita rate) = 35,500 yen
Prefectural tax 8,000 yen (income rate) + 1,300 yen (per capita rate) = 9,300 yen
Forest environmental tax (national tax) = 1,000 yen
The annual tax amount is 35,500 yen for municipal tax + 9,300 yen for prefectural tax + 1,000 yen for forest environmental tax = 45,800 yen.
It will be.

<Adjustment deduction>
In order to ensure that the burden on individual taxpayers does not change due to the transfer of tax sources, reduction measures have been taken in personal residence tax to adjust the increase in burden based on the difference between income tax and personal deduction of residence tax. . (Calculation method of adjustment deduction)
<fixed tax reduction>
Please check here for details on the fixed amount tax cut.
About special tax credit (fixed tax reduction) of individual municipal inhabitant tax and prefectural inhabitant tax for 2024
<Forest Environmental Tax>
Click here for more information about the Forest Environmental Tax.
The taxation of forest environmental tax will begin in fiscal 2024.

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