I’ve scoured the web for an answer to this question but I’m yet to come across a straightforward answer. A bit surprising since I would’ve assumed I am far from the first American to wonder this.
There are additional fields and forms to report foreign pension accounts (form 3520 and 3520A) when filing US taxes.
The FBAR also mentions that these accounts need to be reported.
**Does national pension need to be reported on either of these? Is is taxable?**
And if anybody does have an answer, it would be great if I could get a source to read about this— for myself and for others that may come across this post wondering the same thing.
Cheers!
4 comments
Pretty sure it now does not need to be. What needs to be filed can change from year to year and I believe the requirement to show proof of insurance is now gone.
Pension is not declared. Just fill in your 1040, 2555, and whatever other documents you need. As long as you’re making under 100k USD and don’t have investments, it should be pretty straightforward.
FBAR is unrelated to your filing of taxes. The instructions for FBAR says “*But, you don’t need to report foreign financial accounts that are: Owned by a governmental entity*” [[reference](https://www.irs.gov/businesses/small-businesses-self-employed/report-of-foreign-bank-and-financial-accounts-fbar) ]
Now, if you’re asking whether you need to report income (payments received) from the National Pension, that’s a separate question that I don’t know the answer to, sorry.
As an American living abroad, it’s important to understand the reporting requirements for foreign income and accounts, including the 国民年金 (National Pension) in Japan.
According to the IRS, U.S. citizens and resident aliens are required to report all income, including foreign income, on their U.S. tax return. This means that if you receive national pension payments from Japan, you may need to report that income on your U.S. tax return.
Additionally, the Foreign Bank and Financial Accounts Report (FBAR) requires U.S. persons with foreign financial accounts exceeding certain thresholds to report those accounts annually. The FBAR filing requirements apply to foreign financial accounts, including bank accounts, brokerage accounts, mutual funds, and certain foreign retirement and pension accounts. While there is no clear guidance on whether the 国民年金 (National Pension) must be reported on the FBAR, it is generally recommended to err on the side of caution and report the account if you are unsure.
Regarding taxation, the U.S. has tax treaties with many countries, including Japan, that address how foreign income will be taxed. In the case of the national pension, it may be subject to both U.S. and Japanese tax. You should consult a tax professional who is familiar with U.S. tax laws and Japanese tax laws to understand how your national pension payments will be taxed.
It’s always best to consult with a tax professional or a certified public accountant (CPA) who is knowledgeable in U.S. tax laws and regulations for expatriates. They can provide you with the most accurate and up-to-date information on reporting requirements and tax obligations related to your specific situation.
FBAR is a financial interest in an account outside the US that you have signature or other authority over. You do not have authority over your national pension account.
The way to think about it – you have the (eventual) right to receive funds from the national pension *system* but it’s not tied to any specific account that you own or have authority over.
If you do receive income from the national pension system, that income will likely need to be reported on your US tax returns.