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Originally Posted by SSJup81
So that's how it works. Thanks a lot. Now how does Income Tax work? I still don't understand that much.
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Simple, you don't pay any income taxes in either Japan or the US. You'll still need to file, and pay for any income earned back in the US before you left for Japan, but as a government employee in Japan, you don't pay taxes in Japan. And if you are out of the US at least 330 days out of the year, you don't pay taxes in the US on money earned overseas. (States may have different laws, though... you may need to pay something to the state, depending upon where you're from).
Don't worry, all of that is gone over if you're accepted as an ALT (along with a ton of other stuff... they really help you out and get you adjusted as a JET, and provide a full support network, unlike private teaching jobs). Also, if you end up working for a private company rather than the Japanese government as a JET, you may need to pay taxes on that in Japan, but I don't know how that works.