Solving the problems of dual-income couples! Difference between Year-end Adjustment and Final Tax Return Mortgage Deduction and Easy Procedures
If you are a married couple working together and paying off your mortgage, you can save money on your taxes by taking the mortgage deduction. However, the amount of the mortgage deduction differs depending on whether the procedure is done by year-end adjustment or final tax return, and the procedure also differs. This can be especially stressful for wives who are busy working together and struggle with the procedures.
Therefore, we will explain the difference between the mortgage deduction for year-end adjustment and tax return and how to go about the procedures.
[Mortgage deduction by year-end adjustment]
The year-end adjustment is a procedure in which salaried employees calculate and pay taxes on the salary received during the year in advance at the end of the year. When receiving a mortgage deduction through this year-end adjustment, it can be claimed as a deduction against the husband's or wife's income.
[Mortgage deduction on tax return]
A tax return is a procedure to calculate and pay taxes on income earned during the year. A tax return is required to apply for the mortgage deduction. Even if you are both working, if your wife's income is low, you may be able to get a larger deduction by filing an income tax return. However, the tax return filing procedure is complicated and requires many necessary documents, time and effort, etc., which may be a heavy burden for the wife.
[Procedures and required documents]
The procedures and required documents for year-end adjustment and tax return are as follows.
How to perform the year-end adjustment
- Submit the necessary documents to the company
- The amount of deduction is determined
- Deduction from your salary
Necessary Necessary documents for year-end adjustment
・Application form for mortgage deduction
・Certificate of mortgage repayment
・Contract for house purchase, etc.
How to file tax return
- Complete necessary documents
- Download e-filing documents and input them
- Download and input e-filing documents
- Submit the documents
- Mortgage deduction application form
- Proof of mortgage repayment
- Contract for home purchase etc
Necessary documents for tax return
The procedure for the mortgage deduction differs between year-end adjustment and tax return, but the required documents are the same. If the wife is struggling with the procedure, it is important for the husband to cooperate and help her prepare the necessary documents.
[Summary]
If a couple working together is paying off their mortgage, they can save taxes by taking the mortgage deduction. Although the procedure differs between year-end adjustment and tax return, the required documents are the same. In particular, it is important to check in advance if the mortgage is being repaid through co-ownership, as it may be possible to apply for the deduction through year-end adjustment. If the wife is struggling with the procedures, it is important for the husband to cooperate with her and help her prepare the necessary documents. We hope this article is helpful for couples who are struggling with the mortgage deduction process.
