Retired United States Citizens Living in Japan and US Taxation

...in short you are required to file taxes, however, depending on your benefits with combined earnings, if it doesn't meet the gross income for your status, you will possibly will not need to pay taxes.  Regardless, it is a requirement to file US tax return.   

Even, if you qualify for the Foreign Earned Income Exclusion (FEIE) or the Foreign Tax Credit (FTC), you still need to file a tax return even if your income is below the regular filing threshold.

...does everyone file, probably not.

Wiznerd

I posted this question, because a company who prepares US tax returns for expats excluded SS as taxable income (citing the US Japan tax treaty) in last years return, but this year SS as taxable income.

It appears my last years tax return needs to be corrected and resubmitted.

Thank you for the reply it is greatly appreciated.

Jules in Japan

@Jules in Japan

US Social Security Benefits are subject to US income Tax regardless of where they are deposited if you have combined income (Social Secuurity plus other souce income) above a certain threshold established by the SSA. Easily found on their website.

But if you are living in Japan with a Permanent Resident Visa, and your US Social Security Benefits are deposited into a bank in Japan, they will be subject to Japanese Income Tax.  Under the US-Japan Taxation Treaty, the tax laws of the country of residence applies to pensions including Social Security. If however, you are residing in Japan on a non-permanent VISA, such as a Spousal Visa, your income from anywhere outside of Japan is not taxable by the Japanese authorities.

While many retired persons do not bother with filing a US Tax Return if their income is wholly or predominantly SSA benefits as they are not required to do so, as an Expat who wants to stay clean with the J-authorities, it may be of value to be able to present evidence of US tax filing if ever questioned.