I’ve been living in Japan for about 10 years but still a U.S. citizen, and I had no idea you apparently have to file U.S. taxes even if you’re living abroad and not making much money (…correct?).
I’m mostly a SAHM but have been working freelance part-time and done simple filing in Japan. It sounds like there’s a streamlined procedure for getting caught up on US back taxes, and I’d like to find a tax consultant here to help me do that reliably.
I’ve been internet searching and comparing, but does anyone have personal recommendations of CPAs or companies, or websites or software? (Or if anyone here working as an expat tax CPA, by chance?)
10 comments
Try r/JapanFinance but you definitely have to file every year. Don’t forget to file for FBAR if you have $10,000 in foreign financial accounts.
If you make < $110,000/year (or thereabouts), you just need to file a Form 2555 declaring your foreign income. You won’t actually owe any taxes on it, though.
H&R Block has an int’l tax group
Think the usual suggestion is to start with the current year, 2022, and work backwards. Going back three years is probably enough, do five if you’re paranoid. Frankly speaking, tho they’re apparently getting some more money this year, the IRS is seriously backlogged. IMO if you do 2022 and then keep filing going forward, you’ll be fine. However, if you do back file past the pandemic, you might still get the stimulus checks, worth a couple thousand dollars.
Also, when you file, file as single, not married filing jointly. Reason is that for a joint filing, your j-spouse then hs to include their income, and you also need to put that on an FBAR.
The FBAR is touchier, and given that you have had US$10k total in your bank accounts here, you should be filing. It’s all online now, when done you’ll get an email confirmation.
Also, the FBAR is almost simple compared to tax forms, most people can do it in 15-20min, maybe a little more the first time you try. Do not let anyone sell you any hooey about it being hard, or dangerous, or too tricky–and charging you to do it for you. By the time you scrape together the info for it that a preparer would need, it’ll be an easy 15min task.
I’ve been in your exact situation. Just do the forms manually and mail them in. You shouldn’t owe any penalty or tax.
Man, so glad I’m not American.
I did the streamline procedure. I did the current year online. Then did the previous 3 years by hand and followed the procedures. All the forms are on the IRS website. You have to unknowingly not filed your taxes to qualify or used to another procedure to file to get caught up.
I then went and did all the years for my FBAR, I think there are guides on YouTube, and submitted those as well.
Just download the forms for the last five years. File this year’s first. Then estimate and file the others.
Do it.
You will feel so much better and will avoid any problems later on. The problems would be if the IRS decided to contact YOU, or if you wanted to do something requiring updated taxes later on in the US. That YOU are the one being proactive and contacting them and making things up goes a long way to the IRS working with you.
Also, it is true that the IRS is swamped and you, owing nothing, are very small potatoes to them. You sending this will be accepted and all will be well.
Good luck!
The other advice is good – but just a side note – did you actually receive stimulus checks? Because I believe you only received them if you were current in your tax filings.
If you are a SAHM, it would be for you AND your children (and even potentially J-husband) if they have SSNs.
I am not sure if you would still be eligible for that, but it would have been quite a lot of money.
I’m in the same boat, buddy. 11 years here and I haven’t done US taxes or this supposed FBAR nonsense. I honestly had no idea so now I’m a little bit freaked out. At least I know I’m not hiding US income since I haven’t received any since being here.