Job Discussion Forums

ssjup81 · Posted: Thu Feb 23, 2012 4:32 pm Post subject: Tax Questions

I know that this is in the FAQ sticky, but I'm still a bit confused over it. During my time over in Japan, I didn't file for the 2010 year since I wasn't making my income here in the US, but I'll worry about that later. I'm trying to do my 2011 taxes (since I did work for part of 2011 and did get my w2). For the state side of things, I didn't live here at home for the entire year. I returned home in April 2011 and if it makes a difference, I was only paid from May 2010 - March 2011.

I know ignorance is no excuse, but I had no idea that I would have to include stuff like foreign income, unless the company being worked for was like maybe a branch from one's home country.

So for those who have filed or been in this situation, what exactly do I do? Like I said, reading over this, I'm unusually confused. I only say "unusually" because I feel that I should be able to understand this, but I'm more confused than ever. Since I'm moving back over there next month, I want to hurry up and get this tax stuff over with. Usually doing my taxes isn't too difficult, since it's always been pretty simple, but I'm really lost this time.

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

Yes, you should have put money earned in Japan on your tax forms. Fortunately, up to about $90,000 (see IRS forms for exact figure for each year) it is tax exempt. You simply list it and then it gets taken care of.

How you handle back taxes is up to you. The IRS will probably never learn of your foreign earned money, so you could consider never even mentioning it. Or if you want to have it on the record, file an amendment to the year(s) that pertain.

You're not going to have to show anything akin to a W-2 for Japanese earned salary. I go a little overboard and include a letter of explanation.

Pitarou · Joined: 16 Nov 2009 Posts: 1116 Location: Narita, Japan

For the benefit of any confused non-Americans:

American citizens have to pay their share to Uncle Sam even when they are living and working abroad. As far as I know, no other country has these rules.

G Cthulhu · Posted: Fri Feb 24, 2012 5:06 pm Post subject:

As it happens, quite a few countries require tax on global income, although most only ask for it for a short period of time, eg. the UK requires it if you're outside the UK for less than 2 years. The US demands it forever from both citizens and perm residents.