Due to the recent increase in the retirement age, there has been an increase in the number of people receiving pension while working. Many people are wondering if filing a tax return is necessary when receiving a pension while working. In this article, tax accountant Yoshitaka Nakagawa from Japan Claras Tax Corporation explains the requirements and procedures for filing a tax return when receiving a pension while working.
The main points covered in the article include the requirement for filing a tax return when receiving a pension while working, as well as the necessary procedures. It explains that if the income from public pensions is less than 4 million yen, if the entire amount of the public pension is subject to withholding tax, and if the income amount other than miscellaneous income related to public pension is less than 200,000 yen, then filing a tax return may not be necessary. However, if the total income from public pensions exceeds 4 million yen, or if the income other than miscellaneous income related to public pension exceeds 200,000 yen, then filing a tax return may be necessary.
The article also explains the procedure for filing a tax return, the penalties for not doing so, and the need for year-end adjustments when receiving a pension while working. It includes information on how to create and submit a tax return online and the consequences of not filing a tax return. In conclusion, it emphasizes the importance of filing a tax return if necessary, and the need to seek advice from tax authorities for specific situations. Additionally, it also highlights the contributions of Yoshitaka Nakagawa, a tax consultant and Certified Public Accountant.
With the recent increase in the retirement age, more and more people are receiving their pensions while still working. Many people may have concerns about whether they need to file a tax return if they are receiving a pension while working.
Therefore, Yositaka Nakagawa of Japan Clarus Tax Accountants uses his knowledge and experience in tax accounting to explain the requirements and necessary procedures for filing a tax return while working and receiving a pension.
Is it necessary to file a tax return if you receive a pension while you are working?
If you have income from public pensions and wages, you are required to pay income tax through withholding income taxes and year-end adjustments. As a general rule, you do not need to declare taxes on your own income, but there are cases where you need to do so if you work while receiving pension.
When is filing a tax return necessary?
- If the total income from public pensions exceeds 4 million yen
- If you receive public pensions that are not subject to withholding taxes abroad.
Next, when you work while receiving a pension, is a year-end adjustment necessary? If you receive income only from wages and public pensions, you might have to complete a year-end adjustment. There are certain criteria to be met, and it is necessary to fulfill those criteria to be required to file a tax return. It is important to consider these requirements when deciding if a tax return should be filed for your pension while working.
If you receive a pension while working, what are the filing requirements for income tax and how do you go about doing it?
If you receive both pension and wages, you are required to file a tax return on the period from February 16 to March 15 of the year in which you received income. This filing is required in order to receive a refund, if applicable.
There is an online option for preparing and submitting tax returns where you can do so using smartphones to complete and submit tax returns. If you are required to pay taxes, you can deposit the necessary amount at a financial institution.
What should you do if handing in a tax return is not possible?
If the taxpayer fails to submit the tax return, they may be charged a penalty. Therefore, it is important to submit the tax return by the deadline.
Is a year-end adjustment necessary if you receive a pension while working?
If you are an employee and are working, a year-end adjustment will be necessary regardless of whether you are receiving a pension. This is because it involves calculating the amount of income tax that should be paid, so it is essential to perform year-end adjustments to validate it.
Generalization
This explanation provides the requirements and procedures for filing a tax return while working and receiving a pension. While a tax return is not generally required if you’re receiving just a pension, it is necessary if you have other sources of income or if you may be entitled to an income tax refund.
●Interview cooperation / Yositaka Nakagawa
Clarus National Tax Agency Executive Director, Certified Tax Accountant Tax consulting, tax return support, organizational restructuring consulting, succession and succession planning consulting, accounting outsourcing, and early closing for Tokyo Stock Exchange-listed companies. Works on a wide range of tasks, tailored to the needs of each individual, aiming for a “smooth business succession” and “discussion-free succession” advice, and has gained high praise and trust from many clients.
Japan Clarus Tax Firm (
Structure / Editing / Keiko Matsuda (Kyoto Media Line /