2026-10-08 · YN 상세페이지

How to Maximize Your Refund During Year-End Tax Settlement

Year-end tax settlement is an important time that many people look forward to every year. It's crucial to gather and prepare the necessary information in advance to receive your income tax refund. In this article, we will introduce ways to maximize your refund.

Thorough preparation is the key to a successful year-end tax refund.

Understanding the Basics of Year-End Tax Settlement

Year-end tax settlement is the process of tax adjustment that takes place between January and February each year. During this process, employees organize their annual income and tax amounts, calculating any refunds due or additional taxes owed. By preparing with a correct understanding, you can increase your refund amount. Particularly, utilizing various deduction items is essential.

Difference Between Income Deductions and Tax Credits

Income deductions and tax credits are two ways to reduce taxes. Income deductions lower the taxable income by excluding a specific amount from your total annual income. In contrast, tax credits are directly deducted from the final tax amount after calculation. Understanding these differences and appropriately utilizing them based on your situation is how to maximize your refund.

Utilizing Deduction Items

There are various deduction items that can be utilized in year-end tax settlement. Medical expenses, education expenses, donations, and housing funds are just a few examples, each with its own limits and conditions that need to be thoroughly understood and prepared for. In particular, medical and education expenses require documentation, so it is essential to keep receipts safe and submit them during the year-end tax settlement period.

Using the Year-End Tax Settlement Simplification Service

The National Tax Service provides a year-end tax settlement simplification service. This service helps employees easily access and download the necessary documents. By preparing various deduction materials such as medical expenses, education expenses, and donations in advance, you can receive your refund more easily. Actively utilizing the simplification service ensures thorough preparation without missing any items.

Managing Credit Card Spending

The amount spent through credit cards can be very helpful during year-end tax settlement. You can receive an income deduction of up to 15% of your credit card spending, provided your annual usage exceeds 1 million won. Therefore, it's advisable to manage your credit card usage thoughtfully and increase spending when necessary to maximize deduction benefits.

Preparing for Tax Credits in Advance

To qualify for tax credits, advance preparation is necessary. It's a good idea to secure donation receipts, proof of insurance payments, and other relevant documents in advance. Additionally, since there are income limits for various deduction items, checking these in advance and selecting deductions suitable for your situation is essential.

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