Hi everybody, I'm blessed enough to have achieved FIRE (financial independence, retiring early). My quick early reflection of FIRE while having a child is that it is tough to find people your age who are available to hang out during the day, and during the night is usually family time, so it can gradually become somewhat lonely during weekday daylight hours.
Therefore, I'm considering seeking side income streams as a way to stay connected to society and have some social time. Even though I FIREd, it doesn't hurt to have a bit more money, so may as well optimize earnings in whatever way I can while having a relatively low-stress work situation. Visa situation-wise, I would be on a spousal/dependent visa (of someone who has HSPV or PR).
So let's say I have a freelancing gig or a part-time adult English teaching job.
- If I wanted to stay a dependent for Japan tax deduction purposes, my understanding is that I would have to earn less than 1.3 million yen for a calendar year.
- I believe this would allow my spouse to get a 380K tax deduction (if they remit 380K during the year to me a sign of "dependency").
- This would keep me in the lowest Japan tax bracket of a 5% tax rate.
- As I am a US citizen, I believe I can contribute to a Roth IRA up to the $7K limit as it requires "earned income" (basically, employment income).
- With JPY to USD exchange rates, $7K is roughly 1M yen. Therefore if I earn between 1-1.3M yen, I believe I can contribute up to the maximum Roth IRA limit.
- Due to the US standard income tax deduction and FEIE, I wouldn't be taxed by the US.
Does this sound about right? Effectively earning <1.3 million yen at minimal Japan tax rate, and stuffing most of those earnings into a Roth IRA.
by cutelittlecorgis