Mistake | Correct Information | Impact |
Failure to report all income | All income (salary, side jobs, real estate, cryptocurrency, etc.) must be properly declared | If underreporting is discovered, additional tax penalties may apply |
Overstating deductible expenses | Only expenses directly related to the business are deductible | If disallowed in a tax audit, additional taxes and penalties may apply |
Claiming both Furusato Nozei One-Stop Exemption and filing a tax return | If filing a tax return, Furusato Nozei should be reported within the return, not separately | The One-Stop Exemption becomes invalid |
Miscalculating medical expense deductions | Health checkups and cosmetic treatments are not deductible. Insurance reimbursements must be deducted from eligible expenses | The deductible amount may be reduced |
Forgetting to claim the first-year housing loan deduction | The housing loan deduction requires a tax return in the first year | Missing the claim results in financial loss |
Errors in spousal or dependent deductions | The income of the spouse or dependent must be correctly calculated and meet eligibility criteria | Over-claimed deductions may be questioned by the tax office |
Submitting an e-Tax return but failing to complete the process | Ensure the submission is successfully completed and check for the confirmation email | An incomplete submission may be treated as a failure to file, leading to penalties |
Expecting a quick refund | Refund processing typically takes 1 to 1.5 months | Delayed refunds may cause unnecessary worry |
Believing that missing the filing deadline is not a problem | Late filings may result in penalties such as additional tax or late payment fees | Unnecessary tax burdens may arise |
Relying entirely on a tax accountant | The taxpayer is ultimately responsible for the accuracy of the tax return | Any errors could result in penalties for the taxpayer |
And non resident can ask to refund too much withholing tax from your salary. You'd better consult your employer!
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