May is the Month for Comprehensive Income Tax Filing! Sharing 'Tips' for Easy Direct Filing via Hometax (Essential for Freelancers, Self-Employed!)
May is the 'Month for Comprehensive Income Tax Filing' every year! If salaried workers have year-end tax settlement, comprehensive income tax filing is very important for those with various incomes such as freelancers, self-employed individuals, and real estate rental income earners. As it is a tax that combines 'all income', careful preparation is necessary to avoid disadvantages and reduce taxes.
For those who prefer to file directly without fees, we will delve into how to file comprehensive income tax through Hometax, tips for utilizing the 'Pre-filled Tax Return' service, and common mistakes to watch out for!
Comprehensive Income Tax, Who Should File, and Why is it Essential?
Comprehensive Income Tax is a tax levied by combining all incomes, including earned income, business income, rental income, interest income, and dividend income.
- Main Filers:
- Freelancers, YouTubers, Creators, etc. with Personal Service Income: Those who have income subject to a 3.3% withholding tax.
- Self-Employed Individuals or One-Person Businesses: Those with business income from online stores, cafes, delivery services, etc.
- Real Estate Rental Income Earners: Subject to filing if exceeding certain criteria depending on the number of properties or rental type.
- Even if you are a salaried worker!: Even if you had year-end tax settlement at your company, you are subject to filing if you changed jobs after leaving your previous one, have supplementary income (business income, other income, etc.) as a side hustler, or need to amend due to errors in your year-end tax settlement. (Note: Other income may be excluded from comprehensive income tax filing if it is 3 million KRW (7.5 million KRW in gross receipts) or less per year.)
- Filing Period: Annually from **May 1st to May 31st**. (Based on 2025)
- Payment Deadline: Payment after filing must be completed by **June 30th**.
- Disadvantages: Failing to meet this deadline may result in **additional tax (9% per year if payment is late)**, so it is important to remember.
Direct Filing via Hometax, 'Pre-filled Tax Return' is a Tip! But Be Careful!
Hometax (www.hometax.go.kr) is the official website of the National Tax Service, where anyone can file comprehensive income tax directly by verifying their identity with a public or joint certificate.
- Required Documents: You should prepare your income data, necessary expenses (receipts, etc.), and various deduction documents (credit card usage history, insurance premiums, etc.) in advance.
- Convenience of 'Pre-filled Tax Return': The National Tax Service provides a 'Pre-filled Tax Return' service that pre-fills key filing items for taxpayers. It is convenient as it says, "Based on the information I have about you, I have filled out everything, so just review and submit if it's correct!"
- However! Points to Note: **Never rely solely on the Pre-filled Tax Return and submit it as is!** Since it only contains basic information known to the National Tax Service, if you do not carefully review and correct it yourself, you may end up paying more taxes due to omitted expenses or deductions, or even reduce the amount of refund you should receive. (There are cases where the initial refund amount shown was actually half of the actual refundable amount.)
Direct Filing via Hometax, Be Sure to Avoid These Mistakes!
Self-filing without fees has many advantages, but there are parts where mistakes are easily made.
- Omission of Expenses: For business income earners, omitting necessary expenses that can be deducted will result in overestimation of income and increased taxes. You must keep supporting documents such as receipts well organized.
- Omission of Income: If you have other income, such as small part-time earnings not listed on the statement of earnings, you must include all of it without omission.
- Omission of Deduction Items: Forgetting deduction items that reduce taxes, such as credit card usage, medical expenses, education expenses, donations, National Pension insurance premiums, and contributions to small business/self-employed mutual aid funds, will result in a loss. Pension account tax credits (IRP, personal pension savings) are also important.
- Duplicate Deductions: Duplicate deductions for the same item can result in disadvantages.
- Confusion between Separately Taxed Income and Comprehensive Income Items: Especially for financial income (interest/dividends), confusion between separately taxed income and comprehensive income items is a frequent mistake.
These mistakes can lead to unnecessary additional tax payments or penalties, so it is very important to proceed with care.
For Those Who Find it Complicated, Prepare with a 'Tax Professional'
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For the following individuals, it is strongly recommended to get help from a tax professional rather than filing directly.
- Those with diverse and complex types of income (e.g., a combination of business income, earned income, and rental income)
- Those who are unsure about the criteria for handling necessary expenses
- Those who want to minimize their taxes as much as possible
- Those whose income has suddenly increased significantly compared to last year
Tax laws change every year, and tax-saving methods need to be carefully considered, so advice from a professional can be a great help.
Concluding Remarks
May is the month for comprehensive income tax filing! While direct filing through Hometax is convenient, it is very important not to rely solely on the 'Pre-filled Tax Return' and to carefully check your income and deduction details.
Accurate filing is key to tax reduction and avoiding disadvantages. If you haven't filed yet, prepare now without missing the deadline (May 31st)!
Have you had experience filing comprehensive income tax yourself? If you have your own tax-saving tips or precautions, please share them in the comments!
