Removing a family member from your list of dependents | Health insurance system

Reference: Differences from handling under the Income Tax Act

	Health Insurance Society dependents	Dependents under the Income Tax Act
Term	◆Dependent	◆Dependent family member
Eligible persons	◆Those depending mainly on the income of the insured person for their livelihood	◆Those living on the same household budget as the resident
Scope of family ties	①Lineal ascendant, spouse (including common-law spouse), child, grandchild, or younger sibling ②Family member within three degrees of kinship belonging to the same household as the insured ③Parent or child of a common-law spouse belonging to the same household as the insured person	①Spouse ②Relative of the resident (blood relation within six degrees of kinship or relation by marriage within three degrees of kinship), child entrusted to foster parents under the provisions of the Child Welfare Act, or senior citizen in need of care under the provisions of the Act on Social Welfare for the Elderly
Income limits	◆Annual income: less than 1.3 million yen Less than 1.8 million yen if 60 or older or a person with a disability that satisfies the requirements for receiving disability pension benefits * Monthly income limit: less than 108,334 yen (1.3 million yen ÷ 12 months) Note 1) Monthly income must be less than 108,334 yen/month (150,000 yen/month for those 60 and older and certain other persons) as of the date the reason for naming the individual a dependent arises. 2) If average monthly income over the three-month period starting from the month in which monthly income first exceeds the monthly income limit, the individual’s annual income will be judged to exceed 1.3 million yen. As a result, the person will lose his or her status as a dependent as of the first day in the month in which the limit was exceeded. * The income amounts above include survivor’s pension and disability pension income, which are not taxable. * All steady income is included in income. Business income will be regarded as the business income defined under the Income Tax Act.	◆Annual income: 380,000 yen or less Does not include interest or dividend income or income from sale of stocks, etc. to which separate withholding taxes apply. * If salary income is the only income, income must not exceed 1.03 million yen. * If a public pension is the only income, income must not exceed 1.58 million yen (1.08 million yen if under 65 years of age). * Survivor’s pension and disability pension income are nontaxable.
Concept of annual income	◆This refers to estimated (projected) income assuming the income earned as of the date the reason for naming the individual as a dependent arises will continue for the coming one-year period. * The subject period differs from that under the Income Tax Act. Note 3) Under the Income Tax Act, income refers to annual income for January–December. However, for health insurance purposes, annual income is not limited to January–December. Income earned over one-year periods such as February–January or December–November are also considered annual income.	◆This refers to total income over the period January–December of the previous year.

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