Property Insurance and Taxes

Property Insurance

Japan is safe, but not perfectly so, as Shoko Asahara’s victims will attest. Your body is covered by that ¥35,000-a-month chunk of health insurance that you pay every month (remember to carry your National Health Insurance card with you at all times!), but what about your stuff at home? Not covered. But you can get coverage from British Insurance Group. Call their Osaka office at 06-252-7251.

Tax

CLAIR prints some tax information in their monthly publications as well as the materials you got before and after you came–unfortunately, some of the information for American JETs is misleading. It may take time for your host institution to produce the equivalent of a W-2 form (receipt of income and deductions); the Gensen Choshu Hyo. You can facilitate the process by specifying the calendar period for which you need documentation.

The following is information for Australian, Canadian, and U.S. JETs (apologies to JETs from other countries–please consult the General Information Handbook for more information).

Australia

If you pay tax in Japan, you are not liable for Australian tax for the income earned whilst in Japan. However, it is advised that you contact your local tax office in Australia and apply for a ‘non-resident status’ to avoid being penalized at a later date.

Canada

Canadian JETs must submit a tax return to Canadian Tax Authorities by April 30. Send evidence of tax paid in Japan with the tax form. Please direct queries to REVENUE CANADA, Tax Payers Services Section, 2540 Lancaster Road, Ottawa, ONT K1A 1A3 Canada, English telephone (613)-952-3741, Fax (613)-727-1841.

Please note that each province may have different conditions for Income Tax so it would be best advised to contact your local tax office.

U.S.A.

U.S. JETs must first file forms 2350 and 8822, for change of address and for extension of time to complete tax forms. The extension of time is suggested because if you have resident status in a foreign country (that is, at least 335 days in one year in a foreign country) you qualify for a special tax exemption.

Even so, you must file a return in order to claim the income exclusion. It is not automatic and failure to file a federal income tax return could result in a loss of the exclusion. The forms you will need are Package 1040-7 and Publication 776. These should be sent to you from the U.S. Consulate in Osaka in March or April. If you do not receive them, call the consulate and they will send you the materials free of charge.

Contact the IRS Taxpayer Representative at the US Embassy in Tokyo at 03-3224-5466, Fax (03)-3224-5274 (open M-F 9-12 and 1:30-4:30). Or call IRS International Headquarters (NOT TOLL FREE) at Washington, D.C., Tel. 202-874-1460 (Hours: 8:30 a.m.-4:30 p.m. Washington time, 10:30 p.m.-6:30 a.m. Japan time). Check the CLAIR newsletters for updated information, but also ask veteran JETs what to do.