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US citizen living in Japan for Japanese company. How to report maternity leave allowance from government?

Forum|Forum|3 years ago
February 10, 2023
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I'm a US citizen living in Japan working for a Japanese company.

I received maternity leave allowance from the government.

How (where) do I report this on my tax return?

Also, could I include it as part of my foreign earned income?

Thank you.

Best answer by DaveF1006

It depends, if this maternity leave is form the Japanese Government, you would report this under other income.

Click Federal Taxes -> Wages & Income
Scroll down to Less Common Income Go to the last selection, Miscellaneous Income and click Start
Go to the last option, Other reportable income and click Start
When it asks, "Any other reportable income?" say yes and then type in Maternity Leave from Japanese Employer and the amount.

This is not considered foreign earned income because this is a benefit and not considered wages.

DaveF1006Answer

It depends, if this maternity leave is form the Japanese Government, you would report this under other income.

Click Federal Taxes -> Wages & Income
Scroll down to Less Common Income Go to the last selection, Miscellaneous Income and click Start
Go to the last option, Other reportable income and click Start
When it asks, "Any other reportable income?" say yes and then type in Maternity Leave from Japanese Employer and the amount.

This is not considered foreign earned income because this is a benefit and not considered wages.

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M

minimiri8Author

Thank you Dave for your quick response! It would be great if you could help me with 3 additional questions.

1) You mentioned..."...then type in Maternity Leave from Japanese Employer and the amount."

As I received this money from the Japanese Government, did you mean that I should write Maternity Leave Allowance from Japanese Government (and not Employer)?

2) I will file this by mail and not e-file because TurboTax won't let me as I do not have US income. Do I need to submit documentary proof of my income and maternity leave allowance when I send it by mail? I have never done so in the past few years for my income and have never got in trouble...but wanted to make sure if I am doing it correctly.

3) Lastly, I followed your directions and inserted the maternity leave allowance I received from the Japanese government under Miscellaneous Income. My federal refund appears as $0. Does this mean I do not owe anything to IRS?

Thank you in advance.