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Tax allowances for dependents who live abroad
Posted: Thu Nov 03, 2022 11:05 pm
by Wales4rugbyWC23
I am not sure if this has been brought up before. My wife and two children are living abroad for a year while they go to international school. I have heard that not only my wife and kids can be put down as dependents on my Japanese tax return, but also my parents in law, if I show evidence of them being financially supported by me. Is this possible, and if it is what is the process?
Re: Tax allowances for dependents who live abroad
Posted: Fri Nov 04, 2022 3:01 am
by Tkydon
Yes, you need to fill out the paperwork at your Kakutei Shinkoku
https://www.nta.go.jp/english/taxes/ind ... /12016.htm
Re: Tax allowances for dependents who live abroad
Posted: Fri Nov 04, 2022 12:49 pm
by Wales4rugbyWC23
Thank you very much.
Re: Tax allowances for dependents who live abroad
Posted: Tue Nov 08, 2022 3:04 am
by zeroshiki
This used to be much simpler and they operated on a honesty system but a few years ago, even for nenmatsu chousei, they've required proof of support. Monthly bank transfers and the like so if you're planning to do it, make sure to do it in a way that leaves a paper trail so you can get your dependent deduction.
Re: Tax allowances for dependents who live abroad
Posted: Tue Nov 08, 2022 3:44 am
by goran
zeroshiki wrote: ↑Tue Nov 08, 2022 3:04 am
This used to be much simpler and they operated on a honesty system but a few years ago, even for nenmatsu chousei, they've required proof of support. Monthly bank transfers and the like so if you're planning to do it, make sure to do it in a way that leaves a paper trail so you can get your dependent deduction.
I had no idea about this.
Does it have to be monthly transfers? Or can it be once or twice a year remittance?
Re: Tax allowances for dependents who live abroad
Posted: Tue Nov 08, 2022 3:57 am
by zeroshiki
gnakarmi wrote: ↑Tue Nov 08, 2022 3:44 am
zeroshiki wrote: ↑Tue Nov 08, 2022 3:04 am
This used to be much simpler and they operated on a honesty system but a few years ago, even for nenmatsu chousei, they've required proof of support. Monthly bank transfers and the like so if you're planning to do it, make sure to do it in a way that leaves a paper trail so you can get your dependent deduction.
I had no idea about this.
Does it have to be monthly transfers? Or can it be once or twice a year remittance?
They don't say what is good enough but I assume if those twice a year transfers are large enough for them live off of for 6 months then it should be ok.
In here
https://www.nta.go.jp/publication/pamph ... you-QA.pdf they specifically say there's no set amount but it has to make sense that they're dependent on your money to live off of.
Re: Tax allowances for dependents who live abroad
Posted: Tue Nov 08, 2022 4:10 am
by goran
zeroshiki wrote: ↑Tue Nov 08, 2022 3:57 am
I had no idea about this.
Does it have to be monthly transfers? Or can it be once or twice a year remittance?
They don't say what is good enough but I assume if those twice a year transfers are large enough for them live off of for 6 months then it should be ok.
In here
https://www.nta.go.jp/publication/pamph ... you-QA.pdf they specifically say there's no set amount but it has to make sense that they're dependent on your money to live off of.
[/quote]
Great. I have been sending about 1-1.5 million each year for the past 6 years! I wish I had known about this earlier!
Re: Tax allowances for dependents who live abroad
Posted: Tue Nov 08, 2022 6:01 am
by Tkydon
gnakarmi wrote: ↑Tue Nov 08, 2022 4:10 am
zeroshiki wrote: ↑Tue Nov 08, 2022 3:57 am
I had no idea about this.
Does it have to be monthly transfers? Or can it be once or twice a year remittance?
They don't say what is good enough but I assume if those twice a year transfers are large enough for them live off of for 6 months then it should be ok.
In here
https://www.nta.go.jp/publication/pamph ... you-QA.pdf they specifically say there's no set amount but it has to make sense that they're dependent on your money to live off of.
Great. I have been sending about 1-1.5 million each year for the past 6 years! I wish I had known about this earlier!
[/quote]
You can go back and amend your Kakutei Shinkoku filings for the last 3 years if you have the documentary evidence.
You would have to be sending more than the Dependent Allowances you are claiming for each Dependent;
Y380,000 Per Dependent
or Y630,000 For Dependents between 19 and 23
or Y480,000 For Dependents over 70
or Y580,000 For Dependents over 70 Living With You (so not in this case)
and Additional Y270,000 for Disabled Dependent
or Additional Y400,000 for Severely Disabled Dependent
and Additional Y350,000 for Severely Disabled Dependent Living With You (so not in this case)
Re: Tax allowances for dependents who live abroad
Posted: Tue Nov 08, 2022 7:46 am
by goran
Tkydon wrote: ↑Tue Nov 08, 2022 6:01 am
You can go back and amend your Kakutei Shinkoku filings for the last 3 years if you have the documentary evidence.
You would have to be sending more than the Dependent Allowances you are claiming for each Dependent;
Y380,000 Per Dependent
or Y630,000 For Dependents between 19 and 23
or Y480,000 For Dependents over 70
or Y580,000 For Dependents over 70 Living With You (so not in this case)
and Additional Y270,000 for Disabled Dependent
or Additional Y400,000 for Severely Disabled Dependent
and Additional Y350,000 for Severely Disabled Dependent Living With You (so not in this case)
That’s extremely useful info.
Do you know if there is any governmental agency where I could inquire about the procedure for this? NTA?
Re: Tax allowances for dependents who live abroad
Posted: Tue Nov 08, 2022 9:40 am
by zeroshiki
gnakarmi wrote: ↑Tue Nov 08, 2022 7:46 am
Tkydon wrote: ↑Tue Nov 08, 2022 6:01 am
You can go back and amend your Kakutei Shinkoku filings for the last 3 years if you have the documentary evidence.
You would have to be sending more than the Dependent Allowances you are claiming for each Dependent;
Y380,000 Per Dependent
or Y630,000 For Dependents between 19 and 23
or Y480,000 For Dependents over 70
or Y580,000 For Dependents over 70 Living With You (so not in this case)
and Additional Y270,000 for Disabled Dependent
or Additional Y400,000 for Severely Disabled Dependent
and Additional Y350,000 for Severely Disabled Dependent Living With You (so not in this case)
That’s extremely useful info.
Do you know if there is any governmental agency where I could inquire about the procedure for this? NTA?
Yes. Do you do kakutei shinkoku or are you employed? If you're employed, there's forms you fill out to submit to your employer. If you submit your own tax form, you can go to a NTA office and get a consultation and they'll help you fill it up.