Overview[]
| Do I need to file taxes? | YES. Every citizen must file taxes regardless of how much they owe. |
|---|---|
| Do I owe taxes? | IF you are a first year JET and you did not pay enough taxes on income earned previous to JET: Possibly. Otherwise, NO. |
| Will I receive a tax return? | IF you are a first year JET and you paid taxes on income previous to JET: Possibly. Otherwise, NO. |
| Will I be double taxed after the 2 year tax treaty? (JET-ALTs that arrived before 31 August 2019 only) | NO. After your 2nd year, you will simply pay Japanese Income Tax and Residence Tax. |
| I am not American, do I need to file taxes in my own home country? | Please read the Ishikawa JET Wiki for details about other countries' tax liabilities. |
Explanation[]
Because of the Foreign Earned Income Exclusion, U.S. citizens do not need to pay taxes on any income earned abroad that is less than $126,500/year for 2024. Since JETs make $36,000 at most, we do not need to pay American taxes while on the JET program.
However, we DO need to file taxes annually regardless of how much we owe. This is especially vital for any first year JETs who earned income prior to leaving the United States; those JETs must file that income along with the foreign earned income. Your Foreign Earned Income Exclusion will likely result in the return of any income tax that you paid prior to leaving the United States, depending on the amount you paid. In Japan tax returns need to be filed with the Ministry of Finance before March 15th (mid-April if you pay by automatic bank transfer). However, your CO will file them so it is not necessary for JETs to file taxes in Japan in March.
Current estimated U.S. deadline for expats is June 15, 2025 and with filed extension up to October 15, 2025.
If you stay longer than two years, you must begin to pay Japanese Income Tax and Residence Tax but you will still NOT pay any U.S. taxes due to the aforementioned Foreign Earned Income Exclusion. Again, you will still file taxes as usual during these years.
Due to revisions to the tax treaty in 2019, instructors such as JET-ALTs no longer qualify for the tax exemption. ALTs who entered Japan on and after 31 August 2019 will not be eligible for tax exemption starting in November 2019. If you arrive Japan between 31 August and October 31, and you submit the tax exemption paperwork, you will only be exempt from taxes for the months of September and October. ALTs who arrived by 30 August 2019 will be eligible for 2 years of tax exemption.
- Disclaimer: Your supervisor, contracting organization, PA, and CLAIR are not in a position to provide guidance on your home country tax liabilities. It is the JET's responsibility to seek information via his or her country's tax agencies regarding tax obligations and necessary procedures.
You Will Need[]
Income Tax Withholding Statement
- Income Tax Withholding Statement
- Your contracting organization will give you this paper every January. This statement (源泉徴収票Gensen-Choshu-Hyo in Japanese) will be the counter part to your W-2
- Income Tax Withholding Statement
- KumamotoJET website U.S. Tax Guide
- This invaluable resource is a step-by-step guide to U.S. taxes and is go-to for all JETs throughout the country
- This invaluable resource is a step-by-step guide to U.S. taxes and is go-to for all JETs throughout the country
- KumamotoJET website U.S. Tax Guide
Forms you may need to file[]
- Form 1040- after 330 days in Japan
- Form 8822- is a change of address form
- Form 2555- Foreign Earned Income Exclusion (FEIE)
- Form 1116- Foreign Tax Credit (FTC) allows you to offset dollar to dollar the taxes you paid in Japan with your US taxes
- Foreign Bank and other Account Reporting (FBAR)- assets in foreign bank accounts
- Foreign Housing Exclusion- allows an additional exclusion from income on US taxes for certain amounts paid for household expenses that occur as a consequence of living abroad
Online Resources for Filing Taxes[]
- NOTE: These recommendations are in no way officially associated with or endorsed by the JET Programme, CLAIR, MEXT, or any contracting organization in Tokyo.
TurboTax[]
- JET taxable income is less than $36,000 and therefore all JETs qualify to use TurboTax's Freedom Edition, which offers completely free filing for both state and federal taxes.
1040.com[]
IRS Free File[]
- The IRS has a list of free filing options: https://apps.irs.gov/app/freeFile/browse-all-offers
See Also[]
- Navigating the Tax Waters During Your Special Experience in Japan by Kevin Matthews