Today, we will learn about the 2025 year-end settlement preview and mock calculation. The year-end settlement preview service provided by Hometax is providing the ‘2025 year-end settlement preview service’ from November 15th so that workers can check and prepare for the year-end settlement results early next year.
For credit card income deduction, a 15% deduction is made for credit cards and a 30% deduction is made for check cards or cash receipts for amounts exceeding 25% of total salary. In addition, you can receive a deduction of up to 3 million won in income for amounts used for traditional markets, public transportation, books, and performances in 2024.
2025 year-end settlement preview
You can preview the 2025 year-end settlement on Hometax. You can also use Naver, Daum, etc., and you can also use banking services such as Toss, but basically, there is a service provided by Hometax. Here are the ways to check:
Click ‘Inquiry/Issue’ on the top menu of the National Tax Service Hometax
Click ‘Year-end Settlement Preview’ in Inquiry/Issue
Proceed with joint certificate or simple authentication
Click ‘Calculate income deduction’ on the bottom left
Enter all items from total income to deduction items, then proceed with calculating income deduction
Check the tax amount to confirm refund
👇 Go to the Hometax app (Android)
👇 Go to the Hometax app (iPhone)
Hometax simulation calculation method
The National Tax Service Hometax is operating an automatic calculation site to help office workers easily complete their year-end settlement. Follow the steps below.
Hometax Login
Click on ‘Service by Tax Affairs – Simulated Calculation’
Modify ‘Total Salary and Prepaid Tax’
Enter Total Salary and Prepaid Income Tax
Enter Income Deduction Items
Write Special Tax Deduction, Medical Expenses
Check Refund Amount
2025 Year-end Settlement Preview Deduction Items
Income Deduction
The income deduction rate for the card portion is 15% for credit cards, 30% for check and debit cards, and cash receipts. In particular, the income deduction amount standard for each card is applied from the amount exceeding 25% of the withholding income.
For reference, the year-end settlement is calculated from the credit card amount at the time of calculation, so it is advantageous to use a credit card for up to 25% of the income and then increase the deduction amount with cash or a check card!
Income deduction limit
Annual income of 70 million won or less: 3 million won
70 million to 120 million won: 2.5 million won
Over 120 million won: 2 million won
An additional income deduction of 3 million won is possible for traditional market and public transportation usage, etc.
Monthly rent tax deduction
The standard market price of the house eligible for the deduction has been expanded from 300 million won or less to 400 million won or less for the monthly rent portion, so those who are eligible should issue a cash receipt from Hometax and submit it as proof.
In particular, those who are heads of households without a house and whose total salary is 70 million won or less can receive the monthly rent tax deduction without submitting any documents, as the amount is equivalent to a general cash receipt.
Pension tax deduction
I think pension is something that cannot be left out of the year-end settlement. This is because the tax deduction limit for the individual retirement pension (IRP) and individual pension has been expanded from 7 million won to 9 million won. If you deposit 9 million won into your personal account by the end of December, you can receive up to 16.5%, or 1,485,000 won.
Please note that if you cancel your pension right after receiving the tax deduction benefit, you will have to pay back the amount you gained, so be careful.
Year-end settlement period
Usually, you enter the data for year-end settlement around the third week of January, check the results in February, and it will be reflected in your salary in March. You can use the service on the National Tax Service website Hometax > Convenient Year-end Settlement between January 15 and 18 every year, and calculate the expected tax amount.
Starting from January 15, you can check all of your information in Convenient Year-end Settlement.
After you confirm, you must register any missing parts on the site. (Receipts, donations, medical expenses, etc.)
You must submit them to the company by saving and printing them as PDF files in early February.
You can check whether you have a tax refund or additional payment by checking your withholding tax receipt around the end of February.
For reference, if you are unable to file your year-end tax settlement within the period, you can do so in May, which is the final period for the comprehensive tax return. Additionally, if you are unable to file your year-end tax settlement during the May comprehensive income period, you can file your year-end tax settlement through the Hometax website’s correction claim.
Entering salary items
You must enter the salary section directly. If you are doing it after the company completes the year-end tax settlement, the total salary and prepaid tax will be automatically checked. If you wait a little, you can automatically perform a more accurate simulation calculation.
When not linked: Directly write the previous year’s salary and tax amount shown on the company’s pay statement
Hometown Love Donation System
I think one of the most important things to keep in mind while previewing the 2025 year-end settlement is the Hometown Love Donation System. The Hometown Love Donation System is a system in which, if you donate an amount of 5 million won or less per person to a local government other than the address on your resident registration, you can receive not only a tax deduction but also various thank-you gifts.
The Hometown Love Donation System has only been around for a short time. It is a system in which individuals can donate to any local government nationwide other than their registered address. Donors are provided with a Hometown Love Donation thank-you gift and tax deduction benefits.
Introduction to the Hometown Love Donation System and Expected Effects
With the donations collected through the Hometown Love Donation System, each local government can expand its finances, promote the welfare of local residents, and even contribute to the revitalization of the local economy.
Conclusion
Today, we learned about the 2025 year-end tax settlement preview and mock calculation method. I hope you get a little more refund while looking forward to the 13th month’s salary. I hope you will receive a second salary next year with a thorough year-end tax settlement.
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