So, you’re an American living in Japan, it’s past April 15th, and your taxes are still not ready? Well, don’t worry about it quite yet. You get an automatic 2-month extension from the IRS, until June 15th, to file your income taxes. And if you want to, you can file for another extension after that, and usually you get it–but June 15th is enough, and filing for an extension would actually be more trouble than it’s worth unless you have some unfortunate and bizarre situation going on there.
Since we all get the Foreign Earned Income Exclusion (FEIE), now at $80,000 per year, most of us unlucky enough not to earn more than that end up not paying anything in taxes to the U.S.–which is fair, because we have to pay full taxes here in Japan. But we have to file with the IRS anyway.
“But I don’t owe anything, and I paid taxes to Japan, so I don’t need to file.” Well, we all wish it were so. But alas, you have to file no matter what. In fact, you have to file to get the Foreign Earned Income Exclusion–if you don’t file, then technically you will have to pay complete U.S. taxes! So make sure you do file…
In order to file, you need Form 1040, Form 2555, a 2003 “gensen chusho” form (a small slip that documents your income and tax fess for the year) from your work, and the 2003 Annual Average Rate for the yen and dollar.
By the way, here’s a news flash: As of June this year, the IRS office at the Tokyo embassy will be shutting down permanently, which sucks big-time. The person at the office said the shut-down is to save money (money that Bush has spent on Halliburton or tax breaks for billionaires). They have always been there to answer phone calls, not to mention being there to help you in person if you have problems that can’t be handled by phone. So now if you need help, you have to pay international dialing rates and wait on hold for an hour and a half to talk to someone in Philadelphia who knows nothing about paying your taxes from Japan. Ah, Bush’s America.
But if you want help in the next two months, then call (03) 3224-5466; press “8” as soon as you hear talking in order to avoid the mind-numbing voice mail handling, and instead get switched directly to an “assistor.” If they’re busy or out to lunch, then you can leave a message and they’ll get back to you.
Anyway, I decided that this year I was going to explain how to get those forms done, because there is a bit of a confusing process to go through for this (it wouldn’t be taxes if it weren’t at least a little confusing), and I tend to forget how to do this from year to year. This explanation should help all you regular Americans living in Japan do your tax returns, although:
DISCLAIMER: I am not a professional tax preparer. I do not guarantee that any of the information or advice on this page is correct. If there are any errors which lead you to make errors, that is your responsibility.
In other words, I want to try to help you, not get sued by you. So follow my advice at your own risk. that said, here we go:
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