FAQ: Can I get a refund if too much tax was withheld?

Yes, if more income tax was withheld from your earnings (salary, pension, etc.) than your actual annual tax liability, you can file a final tax return (Kakutei Shinkoku) to claim a refund.

This situation can occur for several reasons:

• Your employer's year-end adjustment (Nenmatsu Chosei) didn't account for all eligible deductions (e.g., significant medical expenses, certain donations, first-year housing loan deduction).
• You had multiple jobs, and the secondary employer withheld tax at a higher rate.
• You made large iDeCo (individual-type defined contribution pension plan) contributions that weren't fully declared to your employer.
• You became eligible for new deductions during the year that weren't reflected in withholding.

To claim a refund, you need to file a "final return for refund." This can be done even if you are not strictly required to file a tax return. You can file a refund claim for up to five years after the end ofthe relevant tax year. For example, for income earned in 2020, you could claim a refund until December 31, 2025.

You'll need your Gensen Choshu Hyo (Statement of Earnings and Withholding Tax) and supporting documents for any additional deductions you are claiming.