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<1>Dual-earner couples?
A couple whose total salary exceeds5million KRW or whose income exceeds 1million KRW.
(Which means even if one of a spouse hasincome in 2018, but falls below the above amount, tax deduction can be made)
<2> Review on who is more eligible toapply credit for dependents
(1) Generally, it is better to apply creditfor dependents to a spouse, who has higher tax base of general income. However,general income tax consists of a progressive tax rate structure. Therefore, ifcouple has a similar tax base of general income or close to a marginal taxrate, personal tax credit has to be appropriately distributed to cut taxes.
(2) In case of special tax exemption items,which has minimum usage terms, such as medical expenses, or credit card usageamount, it is better to be applied to a spouse who has lower aggregate income.
<3> Exemption items
|
Exemption items |
Spouse of dual earner couples |
Dependent family member (A spouse is not included) |
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Basic exemption |
Couples cannot apply tax exemption to one another |
In case of direct dependence, or supporting brothers or sisters, one of the spouse can make exemption (only one of the spouse can make exemption) |
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Additional exemption |
A spouse who received basic exemption can make tax exemption | |
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Child exemption | ||
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Insurance expense |
If one of a spouse is a contractor and the insured person is the spouse, both are not applicable for basic tax exemption. Therefore, couples cannot make tax exemption |
If a spouse pays insurance premiums for the child who is subjected to basic tax deduction, insurance expense cannot be exempted for couples. |
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Medical expense |
Medical expenses paid for spouses with income can be deducted by the spending person |
Only the amount spent for dependent by the spouse who is applied basic tax exemption can be exempted |
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Educational expense |
The educational expenses that spent for spouse is not deductible |
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Donation |
Donation cannot be deducted by the spouse |
Donations made by dependents are deducted by a spouse who received basic exemption |
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Credit card |
For dual earner couples, when using a family card, the amount can be deduct based on the card user |
The credit card usage amount of dependents is deducted from the person who is eligible for basic tax credit |
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| Prev | Youth Employment Subsidies | ||||
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| Next | Cancellation or retroactively issuing of Cash Receipt | ||||
