I'm not sure if this is the best place to ask this, but y'all have proven to be a rather knowledgeable group of internet people. Even if this can't be answered here, I'm hoping someone might be able to point me in the right direction.
An American friend here has been in Japan since the late 80s and is approaching retirement. I was helping him review his finances, and realized he is just a few credits shy of the 40 needed to collect Social Security.
Several years ago he ran his own English school for kids, but for most of the last decade he's just had a few English conversation students a few times a month. He doesn't make a whole lot from his students; it's basically pocket money. His Japanese wife works full time to support the household.
Looking at how close he is to the 40 credits for Social Security, I was wondering if he could elect to pay the self-employment tax to the US when he files, and if he can would that help him get the remaining credits he needs to collect Social Security? Since his income is relatively low, it feels like any tax he might owe would be worth paying in order to cross that 40 credit threshold.
I told him I could help him look into this, but that he should speak with a professional familiar with US taxes and Social Security before making any moves.
I'd love to hear what everyone thinks—is this realistic?
by SleepyMastodon