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Tax Time

June 13th, 2006

If you’re an American living and working in Japan, tax time is just about here. Even though you will probably owe no taxes–you get an automatic $80,000 exemption, and a $3,200 deduction for yourself in addition–you must file or lose the exemption! It’s not too late, though–we get an automatic extension until June 15th. You should have gotten your tax forms by now in the mail, if you’ve filed taxes from Japan before. If not, you can get your tax forms here as printable PDF files. Unless you make more than $80,000, you’ll just need forms 1040 and 2555. By the way, the 2005 yen-dollar exchange rate was 110.11 yen to the dollar.

Alas, the U.S. government, after handing out so many hundred-billion-dollar tax breaks to millionaires and billionaires, had to go all penny-and-dime on us expats and closed down the minimally-staffed IRS office at the U.S. Embassy–meaning that if you need any official help, you now have to call the U.S. and wait on hold for an hour for the IRS rep to get to you, and probably even then they won’t know what you have to do. But, lucky for you, I did a blog post two years ago which shows you step-by-step how to make out your tax forms. As always, I do not guarantee their accuracy and you follow them at your own risk. I have to say that–I’m not a professional tax preparer or anything. It’s just how I do mine. And if you’re confused about how to fill these things out, the guide will probably help a lot. Mail it off by June 15th and you’ll be fine.

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  1. Shari
    June 14th, 2006 at 12:50 | #1

    I’m not sure where you read that you lose the exemption if you don’t file but that does not appear to be strictly the case, even if the IRS themselves were the source of your information about the loss of exemption. We didn’t file for about 8 years due to ignorance of the need to do so. When we contacted the IRS about this, they had us file as far back as they had the forms for (about 4 years including the current year) and did not ask us to pay any sort of penalty or back taxes. We didn’t lose our exemption for not filing.

    I wouldn’t count on our sort of luck in this regard. We might simply have gotten away with something based on the indifference of the people we were dealing with. However, if one hasn’t filed for awhile, it’s better to start filing now and ask the IRS what to do. There may be no consequences besides having to file forms for the years you missed.

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