There's so much to think about when you've made the choice to move abroad. Any number of factors can take you overseas. Work, business, family matters or even a very long-term vacation that is way overdue. With so much in the works and so many new rules and regulations to consider, it's completely understandable to fall behind. You're an American expat living in Japan now, and you must learn all the things that are expected of you. It is even harder to do when you're already behind.
Taxes in Japan
The system in Japan has some added complexities we aren't used to seeing in the US. The way you are taxed is tied into residency statuses which are as follows:
- Permanent residents have lived in Japan for at least five out of the last 10 years.
- Non-permanent residents are expats who have lived in Japan for at least one year.
- Non-residents are expats who do not meet the status requirements of either a permanent or non-permanent resident.
Even beyond knowing which residency category you fit into, Japan also requires that you pay a flat rate Inhabitants Tax. This would be 10% of the taxable income for the previous calendar year.
While keeping Japan's requirements in mind, you also must remember that US citizens are required to file a tax return each year to stay compliant. Not filing your taxes could have serious consequences including passport revocation. Depending on the level of income, filing your expat taxes is necessary even if you don’t owe taxes. This is a common reason many people find themselves falling behind and not knowing how to catch up.
Catch Up with Streamlined Filing
You may have found yourself in the predicament of non-compliance, but you're not alone and you're not without tools to help get caught up. You should always file your US Expat taxes as soon as possible, but if you are years behind, check out the Streamlined Filing Procedures. This allows you to provide all the information for your late filing and complete it, penalty free.
You qualify if:
- You had no prior knowledge of the filing requirements (the IRS has guidelines for willful and non-willful delinquency
- You submit three years of delinquent Federal Tax Returns
- You submit six years of FBARs
Take advantage of this helpful amnesty program right away! Not sure where to get started? Take the first step by reviewing this free Document Checklist Guide to see which documents you need.
Now that you've got all the information you need to get on track, are you feeling confident? Even lucky? A great thing to do with that new-found luck is to enter our $5,000 Giveaway! Greenback Expat Tax Services is celebrating its inclusion on the Inc. 5000 list of fastest growing companies in America by giving away FREE tax prep (a value of $485) to ten lucky expats.
Here’s how it works:
- Make sure you're signed up with Greenback
- Complete your Federal Tax Return between 8/15 and 9/10
- Tune in to see who wins on 9/14 when 10 randomly-selected winners will be notified!
About Greenback US Expat Tax Services
Greenback Expat Tax Services makes life better for Americans living abroad by taking away the anxiety and hassle surrounding US expat taxes. Greenback understands that filing US taxes while overseas can be daunting, but Greenback was founded on the belief that it doesn't have to be that way. Greenback's expat-expert CPAs and IRS Enrolled Agents help expats navigate a complex system in a way that makes sense for their individual situation.
Contact us at firstname.lastname@example.org. You can also visit us at https://www.greenbacktaxservices.com.