Income deduction for credit card usage is a representative year-end tax deduction item. This year, if the amount of credit card use increased by 5% or more compared to the previous year, a 10% income deduction of the increased amount will be additionally applied up to a limit of 1 million won.
The following is a calculation case related to the addition of income deductions for the increase in credit card use announced by the National Tax Service on the 29th.
A worker with a total salary of 70 million won. Last year, the amount of credit card use was 20 million won, and this year, 35 million won (3 million won in traditional markets, 2 million won in public transportation) was used. At the end of the year, Mr. A can get 5.28 million won back, including 3 million won in deductions based on the amount of credit card used and 2.28 million won in additional income deductions.
Worker B, who receives the same total salary of 70 million won. Last year, the amount of credit card use was 10 million won, and this year it was 15 million won. However, Mr. B does not get a single penny back at the end of the year. This is because the minimum amount used to receive the credit card deduction amount was less than 17.5 million won, which is 25% of the total salary.
Worker C with a total salary of 40 million won who worked until June of this year. Last year, he spent 12 million won (500,000 won for books and performances, 1 million won for traditional markets, 500,000 won for public transportation). Until June of this year, the amount used is 20 million won (300,000 won for books and performances, 600,000 won for traditional markets, 300,000 won for public transportation).
In this case, the amount of deduction that C can receive is 1.49 million won. The National Tax Service calculates the income deduction for the increase in credit card use based on the annual amount used regardless of the length of the period of employment.
Traditional market, 900,000 won for public transportation use multiplied by 40%, 300,000 won for books and performances multiplied by 30%, 2 million won for general use over 10 million won (1,200-1,000 won) ) multiplied by the credit card deduction of 15%.
If you calculate 10% of the amount obtained by multiplying the amount obtained by subtracting 12 million won from last year’s use amount from 20 million won by 105%, the total amount of income deduction is 1.49 million won. The amount of income deduction according to the application of the additional limit is 0 won.
Total salary of 100 million won Worker D. Including myself and my dependents, I used 40 million won last year and 49 million won this year (traditional market 7 million won, public transportation 5 million won) as credit cards. If the deduction limit exceeds the total salary of 70 million won and less than 12 million won, 5.2 million won can be refunded by adding the deduction amount of 2.7 million won due to the application of the additional limit to the 2.5 million won.
■ Income deduction amount calculation structure (Unit: 10,000 won)
|
division |
Credit card Amount used |
lowest Amount used |
subject to income deduction (excess amount) |
deduction rate |
Income deduction Price |
basic limit |
addition limit |
|
|
Sum |
|
– |
– |
– |
730 |
250 |
270 |
|
|
basic deduction |
tradition market |
700 |
gross salary × 25% |
700 |
40% |
280 |
|
100 |
|
public traffic |
500 |
500 |
40% |
200 |
100 |
|||
|
credit card |
3,700 |
1,200 |
15% |
180 |
– |
|||
|
total |
4,900 |
2,500 |
2,400 |
– |
660 |
– |
||
|
|
|
|
|
|
|
|||
|
weight go zero My |
use increment |
year-over-year 5% Excess (4,900-4,000×105%) |
700 |
10% |
70 |
|
70 |
|
*The minimum amount used is applied in descending order of deduction rate to benefit the taxpayer
(General credit card → debit card, cash receipt, books, air-fuel cost → traditional market, public transportation)
.
