I am retired US Expat living in Japan on a Spousal Visa which will expire after 5 years this fall. Every year I have been filing a US Tax return as required of US citizens living overseas.
During this 5 year period I was told that any overseas income was not reportable to the J-tax authorities. But I am now told that when I renew my Spousal Visa (or apply for Permanent Residence Visa) I will be treated as a “Resident Tax Payer” by the J-Tax Authorities because 5 years will have already passed. So my question is, will my Social Security Benefits which are deposited into my US bank, become taxable in Japan as income? Will I now have to file both US and Japan income tax returns, and pay income tax to Japan? I have no other reportable income so tax credits and such don’t affect me.
I tried to see if anything in the US-JPN Tax Treaty clarifies this but all it says is that income tax is the jurisdiction of where the person resides, which in my case would be Japan. I even write to the IRS Intertnational Division Baltimore a year ago and they still have not answered.
by WelcomeDry5152