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Tax Credits for US Citizen Residing in Japan

I'm a US citizen, but I'm a permanent resident of Japan.  As such, I must report my worldwide income to BOTH countries for taxation.  I have tried and tried to find clear, simple written explanations of which country I should pay income tax to first for certain forms of income, and which country will grant me a tax credit.  And if I ask around, I get conflicting answers.   Why does this have to be so confusing?

Q:  Which country has to allow for a tax credit?
Could someone please give me a clear, simple answer for each the following:

1. US Social Security Retirement Benefits
2. Japanese Pension (Nenkin) Retirement Benefits
3. US-source Bank Interest
4. Japanese-source Bank Interest
5. US-source Dividends from Stock or Mutual Funds
6. US-source Capital Gains Distributions from Mutual Funds
7. US-source After-tax Retirement Annuity (ATRA) Income

8. US-source Government (Federal or State) Pension Income

9. US-source IRA and 401k Income 

 

I'd really appreciate answers, and I'm sure they'd be helpful to others, as well.

Thank you.

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2 Replies
TomD8
Level 15

Tax Credits for US Citizen Residing in Japan

https://www.irs.gov/pub/irs-trty/japan.pdf

**Answers are correct to the best of my ability but do not constitute tax or legal advice.

Tax Credits for US Citizen Residing in Japan

This is not an answer.  It's merely a link to a 23-page government treaty written in legalese.  I have looked at this many times before and never been able to understand it, in large part because of the so-called "saving clause" in Article 1, paragraph 4, which makes most of the treaty irrelevant to expats like me.  

 

The reason I asked my question is because there is not a clear, concise answer available in this treaty, in any IRS documents I have looked at, or elsewhere online.  

 

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