Necessary expenses (deduction of employment income, deductions for public pensions, deductions for income adjustment, etc.) (taxation in fiscal 2021 and thereafter)

For example, in business income from store management, the purchase price of goods, depreciation of business assets, and salaries of employees are expenses for earning income, and such expenses are called necessary expenses.

In addition, if business management is operated by a family company, the amount equivalent to the salary paid to the family members who are exclusively engaged is used as necessary expenses, and the amount paid for those who file a blue tax return with income tax (blue business full-time employee deduction: 860,000 yen for spouse) is regarded as necessary expenses and deducted from the income amount.

For salary earners such as salaried workers, the deduction amount is calculated according to the amount of income as follows as an alternative to the necessary expenses.

If the salary earner makes the following specific expenditures (1) to (6), the total amount of specific expenditures for that year will be calculated according to the categories in the table below. If you exceed the amount, you can further deduct the excess amount from the salary income amount after deduction of employment income.
In addition, specific expenditures are limited to those certified by the payer, and a certificate of boarding / boarding / boarding / boarding / a document certifying the amount spent are required along with the payer's certificate.
In addition, if there is a part that is compensated by the payer of the salary and the portion to be compensated is not taxed, the portion to be compensated will be excluded from the specific expenditure.

（１）　Expenditures for commuting, which is usually deemed necessary for ordinary commuters (commuting expenses)
（２）　Expenditures that are normally deemed necessary for relocation due to relocation (relocation expenses)
（３）　Expenditures for training with the aim of obtaining the skills and knowledge required directly to work (training expenses)
（４）　Payments for acquiring qualifications directly required for their duties (qualification costs)
（５）　Expenditures normally required for traveling between the person's work place or residence and his / her home in the case of single transfer (return travel expenses)
（６）　Expenditures listed below (if the total amount of the expenditure exceeds 650,000 yen, the expenditure is limited to 650,000 yen), and the expenditure is directly necessary for the performance of the person's duties Those that have been proved by the payer such as salary (work required expenses)
A) Expenses for purchasing books, periodicals, and other books related to duties (book expenses)
B. Costs for purchasing uniforms, office uniforms, work clothes, and other clothing that needs to be worn at work locations (clothing costs)
C) Expenses, entertainment expenses, and other expenses for entertainment, offerings, gifts, and other similar acts to the payer's customers, suppliers, and other persons involved in their duties (such as entertainment expenses)

For public pension, such as the Employee Pension Plan (Kosei Nenkin) and Mutual Aid Pensions, deductions are calculated based on age and income, etc., as a substitute for necessary expenses.

If the following conditions apply, the income adjustment deduction will be deducted from the salary income amount.
①　If the amount of income such as salary exceeds 8.5 million yen and falls under any of the following, 10% of the amount obtained by subtracting 8.5 million yen from the amount of income such as salary (10 million yen if it exceeds 10 million yen) The amount equivalent to 10% is deducted from the salary income amount.
　　(A) The person falls under a special disabled person
　　B. Have dependent relatives under 23 years of age
　　C. Have the same livelihood spouse or dependent relative who is a special disabled person
　　<Computational formula>
　　　Deduction of income adjustment = (income such as salary -8.5 million yen) x 10%

②　If there is a salary income amount and miscellaneous income related to the public pension, etc., and the total amount exceeds 100,000 yen, the salary income amount and miscellaneous income pertaining to the public pension, etc. (up to 100,000 yen each) The remaining amount obtained by deducting 100,000 yen from the total amount will be deducted from the salary income amount.
　　<Computational formula>
　　　Income adjustment deduction = (Salary income + miscellaneous income amount related to public pension, etc.) -100,000 yen
　　 ※　①If there is a deduction, it will be deducted from the amount after deduction of 1.

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