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Quibby84 · Joined: 10 Aug 2006 Posts: 643 Location: Japan

So, here is another question from me...

Last week my company took me to get my visa renewed. While we were waiting I saw that the Japanese Staff had an interesting looking paper. I asked her to see it and it was a income report telling how much money we had made that year and how much was taken out for taxes and stuff like that. I had never seen that before. I didnt know that my company was that organized. When I asked where this came from she told me that the accountant had given it to her. Anyways, I told her I wanted one of those to. My husbands mom will do our taxes back home (I am assumming that that is what you are suppossed to do). I havent gotten one of those papers yet and I emailed today and am waiting for a response.
Yesterday I was researching about tax and saw that at the end of the year (same as in America) we have to file our taxes here, in Japan. It said that you will get some of your tax money back if you paid more than was needed. My company has told me nothing of this..and I think that I should do it myself. But where do I even start? I am very worried that my company will file for me and just keep the money. I can never in a million years imagine them giving me extra money. Can this happen? Is this possible?
Anyways, I am nearly clueless about taxes so if you have ANY advice, please...help me!

Apsara · Joined: 20 Sep 2005 Posts: 2142 Location: Tokyo, Japan

In my case, at this time of the year I get a big envelope with my tax forms in it, and an explanation manual in English- I got mine just a few days ago in fact. I also just got that form you mentioned (shiharai chosho) from my employer.

Every year I take the tax forms and that document, plus all my receipts for my expenses (transport, clothes for work, work-related courses I've taken, food bought during work time etc., books, stationery etc. bought for work) to my local tax office and someone there helps me to fill out the form (I have looked at the manual and am not completely clueless when it comes to these things but it is incredibly complicated, there's just no way I could do it myself and be sure I was getting it correct). About 2 months after I file the tax return I get my rebate, and I also get a ward tax demand from my ward office.

Theoretically the time for filing tax returns is between mid-February and mid-March but if you don't owe any income tax you can go any time- I usually wait until the rush has died down and go in April.

If you don't speak Japanese and no-one at the tax office has much English this could be tricky- my Japanese is pretty much up to this kind of thing so that isn't really an issue for me, but if you do go to the tax office take along a Japanese friend or a good dictionary.

I have to file the return myself, and can claim a lot of expenses because I am basically freelance. I am not sure whether you will be able to do this or how your income would be reported to your city office. When I worked in eikaiwa I never filed a tax return but received my city/ward tax demand- now it seems that the ward office is notified of my income by me filing my tax return.

Look out for a pack from the tax office to arrive very soon- if it doesn't then your tax situation is probably different from mine.

Quibby84 · Joined: 10 Aug 2006 Posts: 643 Location: Japan

Does the school send it? What happens if they dont send it? Do I need to go get it myself?

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

Quibby,
Americans must file, but you are exempt from paying taxes on anything less than $85,000 earned overseas last year. File a 1040 and 2555 form, both of which are available from your embassy or online with the IRS (with instructions separately).

Have you received any sort of pay slip? I use mine to add up monthly wages, then calculate U.S. taxes from there. Haven't had to pay a dime on the money I earned here.

I think this is all in the FAQ sticky.

BTW, at the end of the year, you should have received a form from your employer stating what you earned. It's not for U.S. tax purposes, though.

Quibby84 · Joined: 10 Aug 2006 Posts: 643 Location: Japan

I have my pay slips but I know the company has the info, it is just a matter of getting it.
I have seen nothing yet from the company...that is why I am worried...
Can they file and take the money?

Ok, so I will file taxes in America...my husbands mom has an accountant that does all that. I just want to make sure the company doesnt screw anything up legally that I will have to fix later down the road...

Apsara · Joined: 20 Sep 2005 Posts: 2142 Location: Tokyo, Japan

I doubt your company can file and then get the money- it should go into a bank account with your name on it. For them to receive the money would be fraud. Ask for your tax certificate (the shiharai chosho I mentioned above), then visit the tax office.

Quibby84 · Joined: 10 Aug 2006 Posts: 643 Location: Japan

I dont think they have my bank account number...we get paid in cash...
fraud isnt really something they worry about...they are a "small company" and think they can break all the rules...

So it is possible for them to do it? I asked for my tax paper and they are trying to get it for me now I think... But if I dont HAVE to file in Japan then I will just forget it and file only in America. That is much easier.

G Cthulhu · Posted: Fri Feb 01, 2008 3:31 am Post subject:

thecrit840 · Joined: 01 Feb 2008 Posts: 33

Hi,

I was hoping to find out where you got the information that anything under $85,000 earned abroad by a US citizen is not taxed in the US? How did you learn that?

I'm trying to do my taxes now, and am concerned about getting in trouble if I don't declare the couple thousand dollars I earned in Mexico. I was only there for 8 months. I can't afford to go to an accountant over this

Thanks.

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

The information is quite clear and easy to find from the IRS.
Start here.
http://www.irs.gov/publications/p54/ch04.html
Click FAQs. Choose item 13 (Aliens and US Citizens Living Abroad).
Subsection 13.3 has a section on Publication 54.
Click here to go there directly. http://www.irs.gov/publications/p54/index.html
Skim down the page just wee bit and you'll see this:

thecrit840 · Joined: 01 Feb 2008 Posts: 33

I'm still confused after reading what the IRS says; they seem to only discuss people who have lived in a foreign country for a year or more. Since I was only away for 8 months, I'm not sure if I have to declare this or not.

Never Ceased To Be Amazed · Posted: Thu Feb 14, 2008 9:12 am Post subject:

If you read this U.S. Government document, it will answer your questions.

http://www.unclefed.com/ForTaxProfs/Treaties/index.html

It is surprisingly concise and direct on the U.S.-Japan tax treaty.

NCTBA

thecrit840 · Joined: 01 Feb 2008 Posts: 33

That was helpful. Thanks!

Never Ceased To Be Amazed · Posted: Sat Feb 16, 2008 3:20 pm Post subject: Re: Still unsure

thecrit840 · Joined: 01 Feb 2008 Posts: 33

I was actually on the level--it was helpful, though certainly arduous.

I worked in Mexico (not Japan); I know I hadn't specified. Anyway, that treaty said the tax authorities in both countries would work together to prevent the employee for being double-taxed, and I know thaat my school took out taxes before paying me.

Anyway, should I travel again, and actually take the plunge to teach abroad for a longer period, I'll be armed with better info., and possibly more organized. Smile