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May 16, 2003

The Taxman Cometh

Americans working in Japan will want to keep up with the latest developments regarding their income tax exemption. Currently, under the Foreign Earned Income Exclusion (FEIE) US citizens do not have to pay US income tax on the first $80,000 they earn here. But with President Bush needing to make some changes to pay for tax cuts at home, that may be about to change. This could mean having to pay both Japanese and US income tax. You can read some background information here but the situation is yet to be decided. If you'd like to voice your opinion on the matter, you can write to your Congressman/woman here.

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