Checklist to Maximize Your Refund with the 2026 Tax Preview

maximize your refund with the 2026 Tax Preview service. from pension savings and IRP deductions to medical expenses and donations, we've compiled a tax season checklist of things you can't afford to miss.

plan your strategy for the rest of the year with Tax Preview

it's almost the end of 2025. while holiday parties and traveling are great, there's something else you don't want to miss out on. that's preparing for your 2026 year-end reconciliation, also known as your 13th paycheck. while you can't get back what you've spent, there are some items you can take care of now that will give you a tax break.

take advantage of our year-end tax preview service. starting around November each year, you can see your spending from January through September and simulate your expected taxes and deductions. it's a great tool to help you strategize where you need to make up ground for the rest of the year.

change your debit card, cash, and year-end spending patterns

credit card deductions start at 25 percent of gross pay. the credit card deduction is 15 percent, while debit card and cash receipts are 30 percent. for the remainder of December, it's best to use debit cards or cash whenever possible.

traditional markets and public transportation are as high as 40 percent deductible. it's good to keep this in mind when you're doing your holiday shopping and traveling.

maximize your tax deductions with pension savings and IRPs

if you have the money to spare, consider contributing to a pension savings fund and an IRP. pension savings are tax deductible at a rate of 13.2 percent, capped at $4 million per year. this increases to 16.5 percent if your gross salary is $55 million or less.

IRPs are capped at KRW 7 million per year, and when combined with pension savings, you can deduct up to KRW 9 million. if you make 40 million won a year and contribute 4 million won to your pension savings, you'll get a tax credit of about 660,000 won.

organize your medical and education expenses before the end of the year

if you've been putting off medical treatment, get it done this year. medical expenses are tax deductible at 15 percent of the first 3 percent of your annual gross income. this includes medical, surgical, and pharmaceutical expenses for you and your dependents.

the same goes for education expenses. this includes your child's preschool, elementary, high school, and college tuition and fees, and the deduction is 15 percent. if you're going to pay for it anyway, it's better to pay it now than later.

deducting donations and using Hometown Love donations

if you're planning to make a donation at the end of the year, you may want to combine it with a tax deduction. you can deduct up to 30 percent of your income for designated donations and 100 percent for statutory donations. the tax deduction rate is 15 percent for the first 20 million won and 30 percent for the second.

in particular, the limit for hometown love donations has been expanded from KRW 5 million to KRW 20 million. you can get a tax deduction and a gift in return. this year, you can deduct up to 30 percent of the excess of KRW 100,000 donated to special disaster areas.

take advantage of the rent and mortgage interest deduction

the rent tax credit is a 10 to 12 percent deduction for household heads or household members with gross salaries of KRW 70 million or less. make sure you have your contract and direct deposit records ready.

interest payments on rental loans can also be deducted from 15 to 40 percent if you are the head of a household and earn a gross salary of 70 million won or less. the deduction rate varies depending on your income level, so be sure to check.

dependent deduction must be discussed in advance

dependent deductions are available for spouses, parents, children, siblings, and grandparents with an annual income of KRW 1 million or less. if you only have earned income, your total salary must be KRW 5 million or less.

one person cannot be deducted multiple times. If a couple receives the child deduction at the same time, they may be subject to additional tax, so please consult with us in advance and check the deduction eligibility in Home Home.

frequently asked questions

Q. when will the Tax Preview service be available? A. The National Tax Service provides a year-end tax preview service through HomeTax every November. you can check your estimated tax bill based on your spending from January through September.

Q. what are the limits on pension savings and IRP contributions? A. Pension savings are capped at KRW 4 million per year and IRPs are capped at KRW 7 million per year. Combined, they can be tax deductible up to KRW 9 million.

Q. what happens if I exceed the contribution deduction limit? A. Any contributions not deducted in one year can be carried forward for the next five years.

Q. what's different about the Hometown Giving? A. Starting in 2025, the donation limit has been increased from KRW 5 million to KRW 20 million. in addition to the tax credit, you can also receive a local gift.

Q. what do I need to prepare to claim the rent credit? A. You need to prepare a copy of your lease agreement and your rent payment history. the deduction is available if you are a head or member of a household without a home and your gross salary is KRW 70 million or less.

wrapping up

the key to preparing for the 2026 tax season is to start now. take a look at our tax preview to see where you might have gaps, and take advantage of pension savings, IRP contributions, charitable deductions, and more to make sure your paycheck in March is a big one.

if you found this article helpful, please comment and subscribe. we'll be back with more real-world tax tips.