Expatriate Americans really get bent over when it comes to taxes. We pay income tax twice—once to Japan and once to America. There are only two nations in the entire world that make their citizens abroad pay tax: the US and Libya.
Japanese taxes are due on March 17th. I’ve got my forms and the instructions in English and have been trying to figure out exactly how to fill in the forms. I’ve completed the one that tallies my small business earnings and expense. That was easy.
But looking at the main form, I can’t figure out where to put this total. There are two sections where this might go: Amount of Earnings and Amount of Income. But it’s not clear which number I should use where. Check out this explanation:
How to Complete Form B
Write each amount entered in the ‘statement of earnings and expenses’ or ‘financial statement for blue return’ in the following blocks of the first page of the return here: amount of earnings, etc. ‘business (sales or agriculture)’ [blocks a and i], ‘amount of income (business (sales etc. 1 or agriculture 2)’ [blocks 1, 2].
Government instructions are the same the world over…confusing! I will try to figure this out this afternoon so that I can then get started on my American taxes. Argh!
Yes, we pay twice, but deductions and credits reduce the total tax bill to something less than we would have paid on the same income had we been living in the US. (Not sure if Libya has a similar arrangement.)
Posted by: Michael on February 27, 2003 02:06 PMUgh..I gotta deal with those instructions too - next time I’m getting an accountant dammit!
Posted by: gomichild on February 27, 2003 06:10 PMoh, you poor poor people. what you need is a PAYE system, much less stressful, and you only have do your own taxes if you run your own business.
Posted by: Mac on March 1, 2003 08:26 PMWith the way the U.S. has been behaving lately and on top of that taxing you to help pay for its actions… have you ever considered becoming a Japanese citizen?
Posted by: Laga on March 2, 2003 05:26 PMOh, to have such “terrible” problems!
USAmericans have the first $70,000/y of their income earned overseas excluded from taxes. So you are saying you earn so much over $70,000— say more than $100,000/y—-that you need to start worrying about the tax burden. With the HUGE housing and living deductions living overseas, generally US taxes aren’t burden until your earning well over $150,000. Sheesh.
Posted by: Taro Toporific on March 5, 2003 02:33 PMThe $80,000 foreign income exclusion and the housing allowance are in jeopardy. The Senate Finance Committee has passed a repeal of thoe provisions in order to keep the net tax cut they are pushing through under $350 billion. See http://nytimes.com/2003/05/09/politics/09TAX.html
If this repeal succeeds, taxes will rise steeply for Americans living abroad. There is strong business oppostion to the repeal, but it wouldn’t hurt to drop your Senators and Representative a line.
Posted by: Michael on May 9, 2003 01:40 PMHaving lived most of my life in Asia and Europe, I have held onto my U.S. passport mostly out of inertia. I already pay heavy Japanese taxes and have no intention to fall victim to the bandits in Washington. I am a social conservative and a believer in small government; as such, I supported George W. Bush, even though I know he has, at best, the equivalent of an eighth-grade education. I do *not* support neo-imperialism and the various ideologues and corporate criminals who now back him. If the law changes, I’m simply going to renounce my citizenship. NO TAXATION WITHOUT REPRESENTATION!
Posted by: Searlas on May 10, 2003 02:27 PM