Job Discussion Forums

nawlinsgurl

I came to japan last november and have had taxes deducted out of every check since then. recently someone told me that americans dont pay any taxes AT ALL the first two years. i tried contacting the embassy but they were no help--and the tax office on base only runs certain times a year. can anyone help me with this or least point me in the right direction?
thanks! thanks! thanks!
Very Happy

bearcat · Joined: 08 May 2004 Posts: 367

If you have no military connection what so ever, the rule on taxes is that you are exempt from paying them every year if your income is less that $70,000 a year when working over seas.

There is no 2 year limit.

They still recommend for you to file even if exempt but I've known others who've waited to file 5 years worth of tax forms and because of the 70k exemption, they had no problems.

parrothead · Joined: 02 Nov 2003 Posts: 342 Location: Japan

You don't pay taxes to the U.S. (i.e. when you submit your income tax report), but you still have to pay taxes in Japan. If, however, you stay in Japan for at least one year you can receive a refund for the taxes you paid in Japan after you leave the country. (Try www.taxback.com)

Glenski · Joined: 15 Jan 2003 Posts: 12844 Location: Hokkaido, JAPAN

The IRS is pretty clear about this.

Money earned overseas is still taxable, but only over about $80,000. You are unlikely to make that much as an English teacher, so it behooves you to file for the exemption. Form 2555 will get you started.

If your employer is Japanese, you will get paid in yen and have to pay whatever taxes are needed in Japan. That money is still considered money earned overseas, and as I mentioned, you are exempt from paying US taxes on it up to $80,000 or so. You still have to file for US taxes on that money.

If your employer is American (like some military base), this is money earned overseas, and the exemption rule still holds, but look at what the IRS has to say on its web site to get a clearer description.

nawlinsgurl · Posted: Sun Nov 20, 2005 5:28 am Post subject:

thanks!

Brooks · Joined: 16 Jan 2003 Posts: 1369 Location: Sagamihara

I didn`t pay Japanese taxes my first two years, but since then I have.
I have always had to pay for pension and health insurance, however.

guest of Japan · Joined: 28 Feb 2003 Posts: 1601 Location: Japan

Brooks can you explain that a little better? I have questions, but you left us with so little information that every direction I go in leads to me looking stupid. I don't want everyone to know I'm stupid, so give me some help. Please.

PAULH · Joined: 28 Jan 2003 Posts: 4672 Location: Western Japan

guest of Japan · Joined: 28 Feb 2003 Posts: 1601 Location: Japan

Let's see. Let's use Brooks' cryptic style against him.

My guess is that he was a CIA male prostitute for Arabic transvestites. I doubt he would have paid much in taxes for that job.

Brooks · Joined: 16 Jan 2003 Posts: 1369 Location: Sagamihara

No. Succinct not cryptic.
I have worked at private secondary schools and it was tax free for the first two years. Really.
The first was at a junior high, followed by work at a high school.

I think if you work at a conversation school like NOVA, then you have to pay taxes from the start. Why? Not sure, but I was told that due to the tax treaty with the USA, I did not have taxes deducted from my salary.
So I guess this applies to certain jobs, but not all teaching jobs.
But after I had been here two years, then national taxes were deducted from my salary, and after almost three years ( or 2.5, I forgot) I had to start paying local taxes.