Internet Link Exchange
Member of the Internet Link Exchange

Paying income taxes and getting health insurance:

In Japan and America


Taxes:

There are very specific laws governing whether or not an American citizen earning money in a foreign country will have to pay tax in America. The current laws state that you must be physically outside America for 330 days out of a consecutive 365. Thi s is seperate from the calendar year. For example, if you leave America on June 1st, return back to America for a visit for 30 days over Christmas, and then finally move back to America permanently on the following June 1st, you will not have to pay incom e tax. Likewise, if you left June 1st, and stayed out of the country until the following May 2nd, you would not have to pay income tax. If you do not stay outside of the country for the required duration, you have to pay income tax and social security ta x under the rules of self employment. Of course your employer in Japan will not send any information about your salary to the US Government, but there may be records of any money you wire into America, or change into dollars. As with all taxes, it is best to be honest. Staying outside the US for this required period is not, however, a way to get out of paying any tax. You will have to pay tax in Japan. They have an income tax syst em similar to the US, and there is also a small tax for public health insurance.

Insurance:

Japan has a national health care coverage system, based on employment. This is good once you get a job, but if you are concerned about coverage while you are looking for a j ob (maybe weeks or months) most American insurance companies will refer you to an international provider. Health insurance for coverage in Japan is often quite expensive and there is often a minimum coverage period of 6 months. The most recent quotes I r ecieved were between $375.00-$600.00 for 6 months (depending on age, sex, etc.). There is also a 30 day waiting period before the Japanese system covers you, so it may be a good idea to get a short term policy like this if you are concerned about coverage .

...Continue to next topic: Weather

...Back to Main page/Table of contents