In previous years, I’ve typically waited until November to get a better idea of my total income and then used up my remaining furusato nozei limit between November and December. However, since the furusato point rewards will be ending this October (as mentioned in another post), and this is my first year working full-time as a 個人事業主, I wanted to calculate my donation limit properly in advance to avoid overcontributing.
I’ve gone through the detailed post shared here, and also tried using the linked calculators. Still, I’d appreciate if someone with more experience could confirm whether my calculations seem accurate.
Context:
- I was a full-time employee during January and February of 2025, and working part-time freelance during that period.
- From March onward, I’ve been working full-time as a freelancer. Income has been stable, and my projection assumes a similar pace for the remainder of the year, with a conservative margin.
- I’m filing under the blue form system (青色申告) with double-entry bookkeeping.
- Started contributing to iDeCo from March, at 23,000 per month.
- I have two dependents (parents) living abroad. I send them the minimum qualifying amount for dependent deduction (380,000/year each).
- I have no housing loans or other special deductions.
Total Income Projection for 2025:
Freelance income (Jan–Dec): 19,398,385
Employment income (Jan–Feb): 1,949,213
Total Income: 21,347,598
Deductions:
Business expenses (estimated) 3,879,677
Blue Form Deduction 650,000
Employment income deduction 553,723
Basic deduction 480,000
iDeCo contribution 230,000
Dependent deductions (2 ppl) 760,000
Taxable Income Estimate:
21,347,598
− 3,879,677 (business expenses)
− 650,000 (blue form deduction)
− 553,723 (employment income deduction)
− 480,000 (basic deduction)
− 230,000 (iDeCo)
− 760,000 (dependents)
=≈ 14,794,198 (estimated taxable income)
Estimated Taxes:
Tax Type | Rate | Amount
Income tax + reconstruction tax ~23% ≈ ¥3,400,000
Resident tax (住民税) 10% ≈ ¥1,480,000
Furusato Nozei Limit Estimate:
Using the simplified calculation: Limit = (Resident Tax × 20%) ÷ (90% − Income Tax Rate × 1.021) + 2,000
Income Tax Rate (effective): ≈ 23% × 1.021 = 23.5%
Resident tax income portion: ¥1,479,420
Numerator: ¥1,479,420 × 0.20 = ¥295,884
Denominator: 90% − 23.5% = 66.5% = 0.665
Limit: ≈ ¥295,884 ÷ 0.665 + 2,000 = ¥447,823
Estimated Furusato Nozei Limit: ¥447,000 – ¥450,000
Would appreciate it if anyone could verify whether this approach seems correct. Thanks in advance!
by wakaokami