Page 1 of 1

Inhabitant / Residence Tax Credit

Posted: Wed Jun 16, 2021 7:49 am
by Gulliver
Has anyone successfully received a US tax credit for their Japanese inhabitant / resident tax? If so, any strange implications arise?

Thanks for your help

Re: Inhabitant / Residence Tax Credit

Posted: Wed Jun 16, 2021 11:37 pm
by TokyoWart
You can claim both the national income tax (所得税) and the local tax (住民税) as foreign tax credits on your US tax return. Only the amounts applicable to income above the Foreign Earned Income Exclusion can be claimed (if you choose to take the FEIE) and if you do any business trips to the US those days are also backed out of the tax credit calculation. I think the AMT limits mean that at most 90% of the actual taxes paid can become a credit. In any case in my US tax filing I claim both of those taxes each year.