I searched for "Furusato Nozei loss"

Yesterday, I wrote an article about Furusato Nozei (hometown tax donation) for the first time.

Then, this morning, I was listening to Yupi-san's Voicy episode on "The uninformed will lose out. Things you can do to avoid being uninformed" while doing chores.
That's where she mentioned this.

Ah... I haven't heard the opposing views on Furusato Nozei.
Even if you read the explanations on Furusato Nozei websites, of course they only write about the good parts.

I had been thinking, "Everyone is doing it, so it must be a good deal," but I realize now that I really need to hear the opposing views and make a decision based on understanding.
So, I had a little self-reflection session.

With that said, I apologize for just recommending it yesterday, but I looked into the opposing views.

If you'd like, why not read this article and try Furusato Nozei after properly understanding whether it's "a good deal for you"? (Though I've already done it myself.)

Even those who are "just doing it vaguely" might be able to say out loud with confidence, "I'm doing Furusato Nozei because it's a good deal!" haha

Points to note, also known as the disadvantages of Furusato Nozei

First, I searched for "Furusato Nozei loss".

When you search with keywords like this, many articles appear, such as "What kind of people shouldn't do Furusato Nozei?"

From this, the first thing I learned is that
I couldn't find anyone saying, "You should stop Furusato Nozei because you'll lose money."
It seems like they are alllisting things you need to be careful about as disadvantages.

▼Reference sites

1. Amounts exceeding the deduction limit are out-of-pocket expenses

For example, if you confirmed in a simulation that you could donate 50,000 yen, but you ended up donating 60,000 yen.
The amount returned through deductions is 48,000 yen after subtracting the handling fee. This amount is determined by your salary, etc., so no matter how much you donate, the amount returned doesn't change.

Instead of getting 150,000 yen worth of return gifts for a net cost of 2,000 yen,
you end up getting 18,000 yen worth of return gifts for a net cost of 12,000 yen.

Since you are donating (contributing) an unnecessary amount, the more you donate beyond the limit confirmed in the simulation, the lower your "good deal" rate becomes.

Let's properly check the amount with a simulation!

2. It can be a burden because the expense comes first

If you don't do Furusato Nozei, I think your resident tax is deducted from your monthly salary.
On the other hand, if you do Furusato Nozei, you first need to pay the donation amount (let's say 50,000 yen).
When I chose products on the Rakuten site yesterday, the donation amount was deducted just like when shopping.

After that, the tax deduction is applied, and 48,000 yen is no longer deducted from your salary.
The timing for this deduction is from the year following the year you performed the Furusato Nozei.

It's a situation where "you pay out-of-pocket first, and you receive the benefits after some time has passed."

Let's use our money wisely and plan ahead!!

<Note>
If you use the One-Stop Exception System, your tax deduction amount is listed on the "Resident Tax Determination Notice" issued by your local municipality around June each year.
The limit you find when donating is "just a simulation."
You might want to start conservatively rather than going for the maximum limit right away.

3. There are cases where a tax return is required

If you don't usually file a tax return, you are likely using the "One-Stop Exception System" to handle things easily.
This system has a condition that you can only donate to up to five municipalities.

If you exceed this limit, you will need to file a tax return yourself, so please be careful.

The One-Stop Exception System is limited to 5 donation destinations! Remember this!

While you won't lose money this way, there are points to be aware of, so let's check them!

• It is not a mechanism for tax reduction or tax saving.

• Only the taxpayer themselves can receive the deduction.

• You cannot receive return gifts if you donate to the area where you live.

People who do not benefit from Furusato Nozei

1. People who do not pay resident tax or income tax

Furusato Nozei is a system where people who pay resident tax or income tax can enjoy various benefits by converting that tax payment into a donation.
People who do not pay taxes in the first place can use Furusato Nozei, but it is not beneficial.
Since the return gifts themselves are more expensive than the list price, it is better to just buy them normally without going through the trouble of Furusato Nozei.

2. People with low income (low tax amount) for that year

You can check your deduction limit using a simulation.
If the result shows a deduction limit of 7,000 yen.
I recommend checking whether it is truly beneficial by referring to examples like the ones I wrote in my previous article.

By the way,because I was on maternity and childcare leave,Ideliberatelydid not use Furusato Nozei last year. (At the time, I didn't know the reason, but my husband told me to... lol)

Also, for this year, since I returned to work around June, my deduction limit was on the lower side.

Make sure to check the disadvantages of the information as well

The articles I found by searching for "Furusato Nozei loss" were articles that listed points of caution.

After reading them, I personally felt that "there is a benefit to doing it," so I plan to continue using it from next year onwards.

By the way, when I go to a shop or hospital I'm not familiar with, I read the reviews on map apps, and when I buy products online, I also read the reviews from other buyers.

At that time, what I check are the 'negative reviews'.
I'm sure many of you have had that experience, haven't you?

I decided that when gathering various information, I would properly check opposing opinions as well before making a judgment.

Thank you for reading until the end.