In Part 1, I gave a brief introduction to the Furusato Nozei system, its features, benefits of participating, and the detailed process. In this article, I'll share how to calculate the amount you can contribute and the detailed steps.
How to Calculate the Maximum Amount You Can Contribute
You can only contribute a maximum of 2,000 yen per locality. If you donate more than this specified amount, you'll have to cover the excess yourself. Depending on each person's income level, the maximum tax deduction will vary. You can calculate the contribution limit using the tool below:
This is a tool that helps you easily calculate the maximum limit for contributions you can make through the Furusato Nozei program without exceeding the 2,000 yen self-payment amount, based on your income and family composition. Use this tool as a reference when considering the amount you want to contribute.
Here, you'll enter the following information:
年収（ねんしゅう）：Annual income
家族構成（かぞくこうせい）：Marital status
独身（どくしん）：Single
既婚（きこん）：Married
配偶者控除なし：If your spouse has an annual income over 2.01 million yen, select this option
扶養家族（ふようかぞく）：Dependent information
For example, in the image above, my annual income is 2.8 million yen, I'm married with my wife earning less than 2.01 million yen annually, and I have 1 dependent over 23 years old, resulting in 11,529 yen. This means I can contribute up to 11,529 yen and then get a tax deduction equivalent to 9,529 yen (11,529 - 2,000 yen) during the tax filing process.
Contribution Limits in Furusato Nozei
This limit is calculated based on your income and family structure, including the number of dependents. This is the total limit for the entire year, not per contribution. This means if your maximum contribution limit for the year is 50,000 yen, you can split this amount to contribute to multiple localities, as long as the total doesn't exceed the limit. If you contribute within this limit, you'll only need to pay a maximum of 2,000 yen out of pocket, with the rest deducted from your taxes.
How to Register for Furusato Nozei
Step 1: Choose How to Participate
To participate in Furusato Nozei, you can simply sit at home, go to the website, register, and select the gift you want, just like online shopping. There are several ways to participate in Furusato Nozei, such as:
In my opinion, the most convenient is Rakuten Furusato Nozei. As you can see in the image below, I'm buying a product from Niigata Prefecture, and when purchasing on the Rakuten Furusato Nozei site, I earn 2,600 points for a 39,000 yen item, which basically covers more than the 2,000 yen self-payment. 😁😁😁
Step 2: Choose the Gift You Want and the Locality You Want to Contribute To
After entering the website, the interface appears like an online shopping page, where you can search for products by price range, category, etc.
Step 3: Pay Like a Normal Purchase
On the purchase page, if there's an option to select ワンストップ特例申請書, choose 希望する
One Stop is for those who don't need to do 確定申告 (self-tax declaration procedure) but still receive tax exemptions from Furusato Nozei.
If you select 希望する in the ワンストップ特例申請書 section, on the next screen you'll need to enter your date of birth, so when you receive the item, you'll also get the 寄附金税額控除に係る申告特例申請書 form.
Step 4: Receive the Gift and Invoice from the Locality You Contributed To
After completing your Furusato Nozei contribution selection, the locality you chose will send you a thank-you gift along with confirmation documents.
This paperwork is very important as it's needed for the tax deduction procedure, so you should keep it safe. However, the Furusato Nozei procedure has been simplified in recent years. Instead of keeping individual receipts, you only need one Furusato Nozei contribution certificate (寄附金控除に関する証明書), which compiles all your contributions, localities, and personal information into a single document. This significantly reduces the time and effort for handling paperwork.
All Furusato Nozei websites provide this certificate, so you can participate with peace of mind and take advantage of the tax benefits from the program. Above, I've introduced how to calculate the maximum contribution limit and how to select gifts. In the next part, I'll guide you on how to declare taxes. I hope this article is helpful for you.
Hello everyone. I'm an IT engineer working in Japan. I created this blog to share about life and experiences during my study and work journey. I hope this article will be helpful to you.
