Maternity leave allowance by Japanese Government

[minimiri8]

I am a US citizen living in Japan. I have reported my maternity leave allowance paid by Japanese government under Miscellaneous - Other reportable income. In the description, I wrote "Maternity leave allowance from Japanese Government". For the amount, I converted Japanese yen to USD based on IRS yearly average currency exchange rate.

It would be great if an expert could kindly confirm that this is the correct way to report it. My only concern is that I received the money in Japanese yen, so is it okay for me to report it under this section and not Foreign Earned Income?

[AmyC]

Yes, you did a great job converting with the proper currency exchange website and reporting as other income. You would only report it as foreign earned income if you were looking to file Form 2555 for the foreign exclusion of income. Great job and best wishes!

[minimiri8]

Hi Amy

Thank you for your kind reply.

I am filing Form 2555 as I have income from a company I work here in Japan.

I was told that maternity leave allowance from the government is considered a benefit and not wages, so it should be reported under Miscellaneous - Other reportable income. 

Is my understanding correct?

Thank you in advance for your help.

[DaveF1006 · Accepted solution]

Paid family leave is taxable income no matter who pay. It would be reported under Miscellaneous-Other Reportable income as you suggest. Here is how to report.

1. Log into your account
2. Select Wages and income>other income
3. Miscellaneous Income, 1099-A, 1099>start
4. Scroll to the bottom of the page to Other Reportable Income
5. Other taxable income, answer yes
6. Then give a brief description of the income and the amount listed.