I was wondering about how much income an unemployed dependent could make from stocks, dividends, and miscellaneous income (e.g. crypto) without paying taxes. I played around with the online tax filing system provided by NTA and this is the situation I made:
- 200,000 yen capital gains income from stocks (in tokutei account but without tax withholding)
- 50,000 yen dividend income in a tokutei account with tax withheld (no way to avoid that in a Japanese account)
- 500,000 yen miscellaneous income (from crypto)
- 276,000 yen paid to Ideco (23,000 yen monthly)
In this situation the hypothetical person will not pay any taxes as their deduction is 756,000 yen (480,000 basic deduction plus 276,000 yen Ideco deduction) but their total income is only 750,000 yen. In fact it looks like they could even make a little bit more money than their total deductions of 756,000 because there is also a deduction for dividends of 5,000 yen and a 30,000 yen special deduction for R6 (only for this one year I guess?).
Also, it looks like the amounts for each category of income are not really important as long as the total income amount is less than the total deduction amount (?).
Finally, if this person files their taxes then they will be able to get refunded the tax withheld on their dividends.
Is there anything I'm missing or failing to consider?
by Mayfly9