This article was converted by SimpRead; the original source is zhuanlan.zhihu.com.
Seeing the prompt on the Individual Income Tax APP stating “Comprehensive Income Declaration: ‘Three Insurances and One Fund’ Not Filled,” Xiao Li hovered his finger over the screen, puzzled: Didn’t my employer already pay these? Why do I need to fill them in myself?
Last week, after completing his annual individual income tax declaration, Wang Lei excitedly saw over ¥2,000 extra in his tax refund—so thrilled he nearly jumped out of his office chair. Meanwhile, his colleague Lao Zhang, whose income was roughly the same, received only ¥300 back.
What caused the difference? It turned out Lao Zhang had overlooked the seemingly trivial “Three Insurances and One Fund” option while filling out his form—significantly reducing his eligible tax refund.
01 Why Leaving “Three Insurances and One Fund” Blank Reduces Your Tax Refund
Come March, an air of “tax-refund anxiety” begins to permeate offices. Some rejoice; others sigh. Despite working hard for a full year, why do tax refunds vary so widely?
When you open the Individual Income Tax APP to file your annual tax reconciliation, the system often gently reminds you: “Comprehensive Income Declaration: ‘Three Insurances and One Fund’ Not Filled.”
Many people think: Isn’t this something my employer should handle? What does it have to do with me? So they casually skip it—only to unknowingly forfeit thousands of yuan in potential tax refunds.
The formula for calculating your tax refund (or additional tax owed) is straightforward:
Tax refund (or payment) = [(Total Comprehensive Income − ¥60,000 − Special Deductions such as “Three Insurances and One Fund” − Other Deductions) × Applicable Tax Rate − Quick Deduction Amount] − Tax Prepaid.
In short: the more you contribute to “Three Insurances and One Fund,” the lower your taxable income—and thus, the larger your tax refund.
02 What Exactly Is “Three Insurances and One Fund”? Understanding It Is Key to Correct Filing
The term “Three Insurances and One Fund” may sound like a safe deposit box—but in reality, it’s your four-layered “tax-reduction armor.”
It refers to basic pension insurance, basic medical insurance, unemployment insurance, and housing provident fund—the four items deducted monthly from your salary.
Crucially, the “Three Insurances and One Fund” reported in your individual income tax filing refers only to the portion you personally bear and actually pay. Employer-paid contributions must not be entered here.
Why? Because employer-paid social insurance premiums are classified as corporate operating expenses—not part of your personal salary or wages—and therefore are not deductible before calculating your individual income tax.
03 How Much Should I Actually Enter? That’s the Real Question
Knowing what to enter isn’t enough—you must enter the correct numbers. So where do these figures come from?
The most direct method is reviewing your monthly payslip or salary statement. A formal payroll slip includes sections labeled “Deducted Social Insurance” or “Deducted Housing Provident Fund,” clearly listing the amounts withheld each month from your salary.
If you can’t locate your payslips, don’t panic—two alternatives exist:
First, contact your company’s Human Resources or Finance department directly—they maintain detailed, itemized records.
Second, use the built-in query function within the Individual Income Tax APP, which automatically imports social insurance data reported by your employer.
For example, suppose your monthly salary is ¥15,000, and you personally pay ¥1,200 for pension insurance, ¥300 for medical insurance, ¥50 for unemployment insurance, and ¥1,000 for the housing provident fund.
That totals ¥2,550—this amount qualifies as a special deduction and directly reduces your taxable income when filing your tax return.
04 Beyond “Three Insurances and One Fund”: What Other “Tax-Reduction Tools” Are Available?
If you think only “Three Insurances and One Fund” helps reduce your taxes, you’re underestimating the government’s generosity. Tax authorities provide taxpayers with a suite of official “tax-reduction tools”—namely, Special Additional Deductions.
Currently, Special Additional Deductions include: childcare for infants under age 3, children’s education, continuing education, major medical expenses, housing loan interest or rental payments, and support for elderly dependents.
Take housing rent, for instance: if you rent housing in your primary city of employment and own no property there, you may deduct ¥800–¥1,500 per month.
For young professionals striving in first-tier cities, this single deduction can save a substantial amount of tax.
Special Additional Deductions can significantly lower your taxable income. Consider someone earning ¥30,000 per month: with “Three Insurances and One Fund” deductions totaling ¥5,500, plus additional Special Additional Deductions for children’s education, housing loan interest, and eldercare, their monthly taxable income could drop from ¥30,000 down to just ¥8,500.
05 Step-by-Step Guide: Filling in “Three Insurances and One Fund” in 3 Steps via Mobile APP
Now that theory is clear, let’s move to practice. Open your Individual Income Tax APP and follow these three steps:
Step 1: Navigate to the “Annual Comprehensive Income Tax Reconciliation” module and tap “Start Filing.” The system will auto-populate your full-year income data.
Step 2: On the filing page, locate the “Special Deductions” section and select “Three Insurances and One Fund.” Normally, if your employer has accurately reported your data, the system will pre-fill these fields automatically.
However, system-provided data is often incomplete—or even zero. In such cases, tap “Add New” to manually enter values. Input your personal contributions—item by item—for basic pension insurance, basic medical insurance, unemployment insurance, and housing provident fund, using figures from your payslip.
Step 3: Review all entries carefully, then submit your filing. The system will automatically recalculate your tax refund (or additional tax payable).
You’ll likely notice that after entering “Three Insurances and One Fund,” your refund amount increases noticeably—or your additional tax liability decreases.
If you’re self-employed or work flexibly without employer-sponsored social insurance, you may still report your personal contributions to basic pension and medical insurance under the “Special Deductions” module in the APP—entering amounts based on actual months paid.
06 Common Pitfalls to Avoid
When reporting “Three Insurances and One Fund,” watch out for these common mistakes:
Misconception #1: Including employer-paid portions. Again—only your personal contributions count. Over-reporting may trigger corrections during tax reconciliation and could require you to pay back tax plus penalties.
Misconception #2: Confusing “Three Insurances” with “Five Insurances.” While “Five Insurances and One Fund” includes pension, medical, unemployment, work-related injury, and maternity insurance, only the first three require employee contributions. Work-related injury and maternity insurance are fully covered by employers. Therefore, only the first three should appear on your tax return.
Misconception #3: Ignoring contribution base caps. Although your personal contribution amount is fully deductible, tax law sets upper limits on the contribution base.
Generally, employers calculate contributions using statutory bases, so exceeding the cap is rare—but if your reported “Three Insurances and One Fund” deductions seem unusually high, double-check the numbers.
After completing his tax filing, Wang Lei ran into Lao Zhang at the office water cooler.
“Brother Zhang, did you get your tax refund?”
Lao Zhang sighed wryly: “Just ¥300—barely enough to treat the whole team to bubble tea.”
Wang Lei quietly shared how he’d maximized his “Three Insurances and One Fund” entry. The next day, Lao Zhang refiled—and his refund increased by nearly ¥2,000.
Those silent, monthly deductions from your paycheck are waiting—right inside the Individual Income Tax APP—to be claimed. Every accurate filing is a precise settlement of your year’s labor.
Share your individual income tax filing experience in the comments below: Were you pleasantly surprised by a large refund—or caught off guard by an unexpected tax payment? Do you have any practical tips to share with fellow taxpayers? We look forward to your insightful comments—and thank you for your strong support!