<Anchor>
Friendly Economy Today (18th), reporter Kwon Ae-ri is also here.
Reporter Kwon, you came here with a story about the year-end settlement, is 2020 already coming to an end?
<Reporter>
Yes.
Yes.
We will start preparing the year-end settlement documents in earnest from next year, but in order to receive the benefits well, there are some things you need to keep in mind, so I will tell you today.
The biggest thing is when I check this to see what I'm using for consumption.
At the end of the year and at the beginning of the year, I've been telling you a little bit about how to make year-end settlements, but this year, card deductions have become more important than usual.
Card deductions are also the most important in year-end settlement.
However, this year, the range of credit card deductions is wider than usual.
This is because the card deduction rate and the deduction limit were temporarily increased as one of the measures to boost consumption when consumption fell sharply due to the Corona in the first half.
As you can see, the original income deduction rate is 15% for credit, 30% for check and cash, and 40% for traditional markets or public transportation depending on where it is used.
This usage deduction is a concept that is additionally deducted, so I won't talk about it separately today.
What you will spend, but if you look at it today, the deduction rate will temporarily double in March.
And from April to July, the deduction rate went up to 80%.
At this time, if you say that you did it by driving consumption, you can see the tax benefits faster, and it has returned to its original level from August.
Card deduction benefits were not added for the 2nd spread.
<Anchor>
The total deduction limit has also been increased to reflect this increase in deduction rate, right?
<Reporter>
Yes.
In fact, spending a lot of money doesn't mean that all of them are deducted.
There is a limit, but this year also increased by 300,000 won from the previous year.
Workers with a total salary of 70 million won or less can receive deductions of up to 3.3 million won for the amount spent this year, 2.8 million won for 120 million won, and 2.3 million won for earning more than that.
So what do you need to pay attention to from now on, there is one principle for credit card deduction.
It means that I have to spend more than a quarter of my total wages this year before I start deducting the excess.
For example, there is an office worker whose total salary is 60 million won this year. This year, this person must deduct 15 million won and receive an income deduction for the excess.
The preview of the year-end settlement of the National Tax Service held on the 30th of last month should be entered by now.
Based on last year's income, it shows my total salary and how much I spent up to September.
What I've been using since October, I can guess and put it in.
However, this year's year-end settlement preview does not reflect the increase in the card deduction limit for this year, and what I showed you earlier.
Ignore this and just look at the money I've spent this year and see how I'll spend the rest of the year.
<Anchor>
Reporter Kwon seems to be asking you to think about whether to use it as a card or cash, but isn't it usually more advantageous for deductions than cash cards?
<Reporter>
Yes.
Now that the deduction rate is back the same as in previous years, again there is a difference in deduction rate between credit card and debit card or cash.
As a preview, even if I save a little this year and spend money in the future, I don't think I'll spend more than 25% of my total salary, then I just keep using my credit card.
Credit cards usually have more benefits than debit cards, and you won't be able to deduct them anyway.
However, if you have dependents, most of them spend more than 25% of your total salary, and from now on, it is beneficial to spend mainly on cash cards.
However, from here on, I am very confused these days, but the important thing is that the calculation method is different this year.
Let me show you again, this year's limit on the amount eligible for deductions from your paycheck.
This is to focus on the money spent between March and July.
When deducting by credit card, up to 25% of the total salary is deducted first due to consumption with a low deduction rate, so there is a high probability that the money spent during this period when the deduction rate was very high will be eligible for deduction.
For example, I am the head of the household with an annual salary of 5,000, so I have already spent 20 million won on my credit card. Then, the income deduction will start for 7.5 million won excluding 12.5 million won.
Supposing that I spent 1 million won on a credit card in March and 5 million won between April and July. As you can see, the amount spent at this time exceeds the limit of the amount of income deduction that I can receive this year.
In this way, you don't have to carry a check card.
Credit cards will continue to be advantageous in the future.
However, if the credit card used by this person this year is still 15 million won, the credit card spent in March was 1 million won, and between April and July only 2 million won, the amount subject to income deduction at this time. Since it is only 1.9 million won, it would be advantageous to use a debit card for the remaining period.
Here, after I meet my deduction limits, I return to my credit card again. This is actually the best, but it's too complicated.
Today I will only tell you this far.
If you remember this far, you will be able to take advantage of both tax savings and card benefits.