Japanese Pension & Deductions

Questions covered:

Am I required to pay taxes on my Japanese pension (kōsei-nenkin)?

If you receive these payments, you must report it on your U.S tax return. However, if you pay tax in Japan on these distributions, the payments will count as foreign tax credit towards your US tax obligations.

I pay tuition to a Japanese school. Am I allowed to claim a tuition deduction?

No. There are no provisions for this.

I own a home in Japan and pay property taxes and mortgage interest. Am I allowed to claim a deduction?

Yes. The rules are the same as for homes in the United States. You can itemize deductions or claim the standard deduction (whichever is higher). Please see Standard vs Itemized Deductions on the US Tax Return.

Am I subject to double taxation in Japan and the United States?

If your return is prepared correctly there should be no double taxation in most cases. There are tax treaties involved, and any tax paid to Japan should be applied to your U.S. tax liability.

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