Nomadic.Tax
JURISDICTION/US AUTHORITY/IRS TAX YEAR/2025 CLUSTER/US

US Tax Filing for Americans Living in Japan

Japan is one of Asia's most popular long-term expat destinations, with a large American community of teachers, technology workers, military personnel, and business executives. Japan has high income taxes and a comprehensive US-Japan tax treaty, but several popular Japanese savings and investment vehicles — particularly NISA accounts — are not recognised as tax-advantaged under US law. We navigate these complexities for you, ensuring your US return is correct and optimised.

Start your return
APPLICABILITY/WHO THIS IS FOR

Who this is for

✓ US citizens and green card holders employed in Japan or working for Japanese companies
✓ Military and government personnel stationed in Japan
✓ English teachers, technology workers, and business executives living in Japan
✓ Americans with Japanese NISA, iDeCo, or kōsei nenkin pension accounts
✓ Long-term Japan residents considering or holding permanent residency
FILING RECORD/FORMS THAT MAY APPLY

What this filing may involve

Every situation is different. The forms below commonly apply — your specific filing may vary.

Form 1040 — US Individual Income Tax Return
Form 1116 — Foreign Tax Credit for Japanese income tax (shotokuzei) paid
FinCEN Form 114 — FBAR) — Japanese bank and investment accounts
Form 8938 — FATCA reporting for foreign financial assets
Form 8833 — US-Japan treaty position if applicable
Form 8621 — PFIC reporting for Japanese mutual funds held in NISA or brokerage accounts
Schedule C — for self-employed Americans (including freelancers and eikaiwa school owners)
DOCUMENTS/INFORMATION REQUIRED

Documents usually needed

■ Gensen chōshūhyō (Japanese withholding certificate, equivalent of W-2)
■ Japanese bank account statements
■ NISA and iDeCo account statements
■ Japanese pension (nenkin) records if applicable
■ Prior year US tax return
■ Social Security number or ITIN
■ Passport entry/exit records or alien registration card
PROCESS/RETURN ASSEMBLY

How Nomadic.Tax works

AI-assisted preparation with licensed professional review — every time.

1
INFORMATION
Tell us about your Japan employment, income, and investment accounts (NISA, iDeCo)
2
DOCUMENTS
Upload your gensen chōshūhyō and account statements
3
AI PREPARATION
Our CPAs apply the Foreign Tax Credit and identify any NISA/PFIC reporting issues
4
PROFESSIONAL REVIEW / E-FILE
Your return is e-filed with all required forms and disclosures
PROFESSIONAL REVIEW/CPA / ACCOUNTANT SIGN-OFF

When human review matters

ⓘ Japanese NISA accounts are not tax-advantaged under US law; income and gains inside NISA are US-taxable and may require PFIC analysis
ⓘ iDeCo (individual defined contribution pension) treatment for US purposes requires treaty analysis
ⓘ US-Japan totalization agreement affects Social Security for self-employed Americans

Relevant plans

Choose the package that best fits your situation, or view all plans.

Premier
$349
For self-employed nomads, freelancers and platform earners.
  • ✓Everything in Standard
  • ✓Schedule C & SE for self-employment
  • ✓Multiple income sources and currencies
Start your return
Most popular

Expat
$499
For Americans living abroad — FEIE, foreign tax credits and FBAR included.
  • ✓Everything in Premier
  • ✓Foreign Earned Income Exclusion (Form 2555)
  • ✓Foreign Tax Credit (Form 1116)
  • ✓FBAR filing (FinCEN 114) included
Start your return
Investor
$599
For expat investors and landlords with income on top of work or business.
  • ✓Everything in Expat
  • ✓Schedules D & E for investments and rentals
  • ✓Foreign asset reporting (Form 8938)
  • ✓FBAR filing (FinCEN 114) included
Start your return
REFERENCE/COMMON QUESTIONS

Frequently asked questions about US Tax Filing for Americans Living in Japan

Japan has high income taxes — will I owe more to the US?

Generally no. Japanese national income tax plus local inhabitant tax is typically comparable to or higher than US federal rates, so the Foreign Tax Credit usually eliminates additional US tax. However, you must still file a US return annually.

Is my NISA account reported to the IRS?

NISA (Nippon Individual Savings Account) is not recognised as tax-advantaged under US law. Any dividends or capital gains inside your NISA are subject to US income tax annually. Mutual funds inside NISA may also be classified as PFICs, requiring Form 8621. We assess this for your specific holdings.

I have Japanese social insurance (shakai hoken) withheld from my salary — can I credit this?

Japanese social insurance contributions are covered by the US-Japan totalization agreement, which generally prevents you from owing both US Social Security taxes and Japanese social insurance on the same earnings. Whether the shakai hoken contributions are creditable against income tax is a separate question our CPAs analyse.

I've been living in Japan for years and never filed US taxes — what do I do?

You can catch up through the IRS Streamlined Foreign Offshore Procedures, which allows most non-wilful non-filers to file three years of back returns and six years of FBARs with reduced penalties. We specialise in exactly this situation.

Who is this for?

Browse by your situation for tailored guidance and the right package.

US Expats Abroad Americans in Japan filing under the US-Japan tax treaty with high local tax rates. See who this is for →

Related filing services

US Expat Tax Filing → View filing service Form 8621 PFIC Filing → View filing service FBAR Filing → View filing service Streamlined Filing Compliance → View filing service See All Pricing & Plans → View pricing & packages

Ready to get your Americans in Japan filing handled?

AI-assisted preparation, reviewed and e-filed by licensed professionals. Fixed price, no surprises.

Start your filing today