Spousal Deduction: Who Qualifies and What You Get
Learn how to reduce your income tax if your spouse earns below a specific income threshold.
The Spousal Deduction is a tax relief measure designed to reduce the amount of income tax a person must pay if they have a spouse with a relatively low income.
Who it's for
This scheme is for taxpayers who are married and have a spouse whose annual earnings fall below a specific government-set threshold.
What you get
If you qualify, you will receive a reduction in your income tax, which helps increase your overall take-home pay.
What it costs you
There is no direct monetary cost to use this scheme, but you must officially declare your spouse's income on your year-end adjustment form.
The catch to know
Many part-time workers find it confusing to manage their earnings around a specific limit, often referred to locally as the "1.03 million yen wall." If a spouse earns even slightly above this threshold, the deduction may no longer apply.
How to apply
- Confirm your spouse's total annual income for the year.
- Ensure their earnings are below the required threshold.
- Complete the necessary sections on your year-end adjustment form.
- Submit the paperwork to your employer or the relevant tax office.