There are two deductions related to our family and relatives. They are called "Deductions for spouse" and "Deduction for dependents". I will show the FAQ about these deductions below.
Q1. For dependents, is there an age limit?
A1. Yes. You can apply the deduction related to your relatives who are more than 16 years old. As long as your relatives meets four conditions in Q2 and Q4, you can include the deductions for your relatives. If you have your relatives who are 15 years old or less, you can receive the child-care allowance from your local government instead of the deduction from your income.
Q2. Up to what degree of consanguinity and affinity can be considered as qualified dependents?
A2. Yes. You can apply the deduction related to your relatives within the six degree of consanguinity and relatives by marriage within the third degree of affinity.
Q3. Is there a maximum number of dependents that I can apply?
A3. No. If your relatives are within the range in Q2, there is no maximum number of dependents that you can apply for.
However there are a few conditions to apply the deduction. Please refer to Q4.
Q4. Are there any other conditions to apply the deduction?
A4. Yes. There are other three conditions except the range of relatives (Q2). The conditions are as follows:
a. Relatives must live in the same household with the income earner.
Note : Only person who live in the same household can apply the deduction related to his/her relatives.
b. Relatives' income in 2019 is 380,000 yen or less
Note : The income means taxable income after deducting expenses and deduction for employment income.
c. Relatives who do not receive any salaries from your business.
Q5. For married couples who are both working, are they both entitled to apply the deduction related to their children as their dependents?
A5. No. Only one of them can only apply the deduction related to their children.
Q6. Is there a difference in the amount of the deduction?
A6. Yes. The amount of each general dependents is 380,000 JPY. If your relatives are 19 years old or older but younger than 23 years old, the amount per dependent is 630,000 JPY. If your elderly parents etc. who are aged 70 or over are living together with you, the amount per dependent is 580,000 JPY. If your elderly parents etc. who are aged 70 or over are not living together with you, the amount per dependent is 480,000 JPY.
Q7. Do I need to update my dependents manually every year?
A7. Yes. You need to make sure how much your relatives earn and declare them as a dependent, even if your relatives are high school students or university students. Then if applicable, you need to apply the deductions related to your relatives every year.
Q8. For children who are already working but still live in my house, can they still be considered as my dependent?
A8. Yes. If the income of your children in 2019 is 380,000 JPY or less, you can apply the deduction related to your children.
Q9. For children who are already working and don't live in my house, can they still be considered as my dependent?
A9. Yes. If the income of your children in 2019 is 380,000 JPY or less and you transfer money for their living expenses or education expenses, you can apply the deduction related to your children.
