Yuki's Passion 1 Posted June 22, 2007 Share Posted June 22, 2007 Americans overseas only have to pay US taxes if they clear US $100,000 right? Has that lowered or risen? Anybody know? Link to post Share on other sites
tsuyu 0 Posted June 22, 2007 Share Posted June 22, 2007 Greetings, long time lurker and first-time poster here. This is a situation I have some experience with, so here's the short story. If you are an American then you will have to file tax returns regardless of whether you are in the US or overseas. However, we get a break since we can claim the Foreign Earned Income Tax Exclusion. For 2006 it was $82,400, in 2007 it was $82,400. The downside is that if you have no taxable compensation leftover as a result, then you cannot contribute to an US IRA (technically you can have one, but can't contribute any more to it that tax-year). I believe the max possible is $4000-$5000, so this is something to think about. But, if you are investing in the US market (stocks, funds, etc), you probably won't be able to claim it under the FEITA. Technically you are also supposed to report it to the J government, so you get double-taxed there. Not sure how it works if you are holding Japanese stocks. Whether you want to pay into Social Security or the Japanese pension system is another thing to think about. US SS needs a minimum of 10 years to start receiving benefits, but the J-system is around 25 years I think. If you are making a good income, have a complex tax set-up or plan to be here a long time, I would recommend consulting with an accountant to help get things sorted out. Link to post Share on other sites
SirJibAlot 0 Posted June 22, 2007 Share Posted June 22, 2007 CB, you still have to file regardless, but if you make less than 80k, you shouldn't have to pay much. I got raped this year because they changed the rules....It used to be that the first 80k is ignored and you start paying taxes on 80,001 as if it was your 1st dollar. Now they still let you ignore your first 82,400 (it went up in 2006), but 82,401 is taxed as if you made the first 82,400. It totally sucks - I used to pay $700, now i'm paying $20k. Link to post Share on other sites
bushpig 0 Posted June 22, 2007 Share Posted June 22, 2007 What do you do sirjib? Link to post Share on other sites
SirJibAlot 0 Posted June 22, 2007 Share Posted June 22, 2007 I work for a software company that is based out of the US Link to post Share on other sites
indosnm 0 Posted June 23, 2007 Share Posted June 23, 2007 God, that's daylight rape Jibs. Us Aussie just got it al too good! 90 days outta the country and we become non residents so non of our income is taxed in Australia! And since last year we don't have to pay capital gains tax on the sale of shares which is the best law that has ever been introduced! Link to post Share on other sites
SirJibAlot 0 Posted June 23, 2007 Share Posted June 23, 2007 I thought all Aussies were out of town for 90 days on holiday regardless - that's a great deal! Link to post Share on other sites
Curt 1 Posted June 24, 2007 Share Posted June 24, 2007 I haven't got mine yet. Perhaps it is free for me! Link to post Share on other sites
TheOrange 0 Posted June 28, 2007 Share Posted June 28, 2007 OK I have just spend 90 minutes talking to a very friendly lady in the town office. I was determined to get to the bottom of all this and find out what was going on. Anyway, she explained it all to me and I now pretty much understand where all my numbers are coming from. Unfortunately there wasn't a mistake. In my case, basically a combination of the following three things... - an increase in the town tax, basically now 10%; - an increase in the % rate for the national health thing; - a scrapping of some kind of "tax limit" that there used to be, but now isn't ...saw my bill for the whole lot go up over 165,000 yen. Seems extreme when my salary has not changed for 2 years. The better news is that I will be set to get around 75,000 yen of that back next spring because I am paying too much this year. (Don't ask!) So my bill effectively went up around 90,000 yen (though I'd rather not pay the other bit this year just to get it back next). Not much I can do but pay the thing. I suppose if you think of it all in one chunk it's nasty but if you think of it as a monthly it's easier to take. Link to post Share on other sites
yoroshiku onegai shimasu 2 Posted June 28, 2007 Share Posted June 28, 2007 My taxes (town and health) have gone up about a man a month. I went to the office on Monday to find out and got the explanation. No mistakes on mine either Link to post Share on other sites
SirJibAlot 0 Posted June 29, 2007 Share Posted June 29, 2007 DAMN!!!!!! I'm getting hosed! Emp insurance up 3,360 Wefare up 1,097 Income Tax up 27,941 Ward Tax up 195,600 WTF!!!!!! That's a montly increase of 227,998! That's like USD 2G's...Something is very wrong here. I think "TheOrange" and I are getting hosed. I overpaid by 616,000 last year...I need tax relief, my wife better give birth this year - daddy needs deductions! Link to post Share on other sites
big-will 7 Posted June 29, 2007 Share Posted June 29, 2007 Not sure I understand those numbers SirJib, but if I do they are way too big to gain much sympathy I would think. Link to post Share on other sites
indosnm 0 Posted June 29, 2007 Share Posted June 29, 2007 They won't save you that much! Link to post Share on other sites
SirJibAlot 0 Posted June 29, 2007 Share Posted June 29, 2007 Big Will, i'm going to be unemployed soon so the big numbers will disappear. I'm actually looking forward to collecting back on this 'employement insurance' that I paid so much into. Does anyone have experience to collect unemployement in Japan? Indo, I thought they gave some pretty nice deduction to encourage the birth rate...remember "baby making machines"? Link to post Share on other sites
indosnm 0 Posted June 30, 2007 Share Posted June 30, 2007 Jibs, The deduction is 380,000 for ya kid and same for your wife if she earns under 1,300,000. Not much but it all helps. Link to post Share on other sites
SirJibAlot 0 Posted June 30, 2007 Share Posted June 30, 2007 Actually, I think my math is off - this it the first year that I'm paying ward tax in anycase my ass is so taxed you could drive a truck into it. Link to post Share on other sites
bushpig 0 Posted June 30, 2007 Share Posted June 30, 2007 Sirjib, you keep leaving yourself open to all sorts of nasty comments, but I'll refrain on this occasion Link to post Share on other sites
SirJibAlot 0 Posted June 30, 2007 Share Posted June 30, 2007 that one was on purpose... Link to post Share on other sites
indosnm 0 Posted July 1, 2007 Share Posted July 1, 2007 wait till they shove it up you next year... not working but still getting charged on lat years earnings... gotta love this place! Link to post Share on other sites
SirJibAlot 0 Posted July 1, 2007 Share Posted July 1, 2007 Yea, that is bizzarre...I mean, even for the retirees....they are in for a surprise after they retire - what a screwy system. Link to post Share on other sites
indosnm 0 Posted July 2, 2007 Share Posted July 2, 2007 Even for the retirees... Link to post Share on other sites
sunrise 0 Posted July 2, 2007 Author Share Posted July 2, 2007 I went to the ward office for something else so I asked them about it. So, we pay less tax, but that makes our net income higher, so our ward tax is then charged from a higher net income rate, and the percentage used to calculate ward tax is double of what it used to be. The handout they give says the difference should cancel out, but the guy told me that in reality we'll wind up paying a 'little bit more'... ummm.. yeh, okay... whatever... Link to post Share on other sites
yoroshiku onegai shimasu 2 Posted July 2, 2007 Share Posted July 2, 2007 Ah the handout. Bunch of lies it is. The example they give shows the numbers balancing out at +-0 yen. Ridiculous. Every single person I know has seen a substantial increase. Link to post Share on other sites
SirJibAlot 0 Posted July 2, 2007 Share Posted July 2, 2007 That's marketing for you... Link to post Share on other sites
indosnm 0 Posted July 3, 2007 Share Posted July 3, 2007 Do they think everyone is stupid and no one owns calculators? Link to post Share on other sites
Recommended Posts