U.S. Tax Filing for Americans in Tokyo

Fixed-fee support for U.S. citizens and Green Card holders in Tokyo — Japanese salary, NISA accounts, Japanese funds and PFICs, the U.S.–Japan treaty, yen FX, FBAR and FATCA reporting.

By Danilson Ramos · Founder, Atamatax

Published June 2026 · Updated July 2026

Tokyo is home to a long-established American community across finance, tech, education, gaming and multinational headquarters roles. Japan and the U.S. have a comprehensive tax treaty and a totalization agreement, but popular Japanese savings products and the need to convert yen amounts for a U.S. return can complicate an otherwise routine filing.

Typical situations we see in Tokyo

NISA accounts: tax-advantaged in Japan, but the U.S. generally does not recognise the wrapper, and the Japanese funds inside can be PFICs.
Japanese mutual funds and investment trusts held through a local broker that are commonly PFICs (Form 8621).
Yen-denominated income, accounts and gains that must be converted to U.S. dollars, where exchange-rate movements can themselves create reportable currency gains in some cases.
Finance and tech professionals with RSUs, options and bonuses to reconcile across Japanese and U.S. rules.
Multiple Japanese bank and brokerage accounts that together cross the FBAR and FATCA (Form 8938) thresholds.

Japan's tax treaty does not switch off U.S. filing. NISA accounts, Japanese funds and yen-denominated income can each create U.S. reporting obligations — even when Japanese tax has already been paid and little or no U.S. tax is ultimately due.

NISA and Japanese funds

A NISA is tax-free in Japan, but for a U.S. person the wrapper is generally not recognised and the funds inside may be PFICs, which carry extra reporting. The U.S.–Japan treaty helps in several areas but does not blanket-shelter these products. It is generally worth reviewing your holdings before filing. Atamatax provides preparation support; this is not individualized advice.

Authorities cited

IRC §1291 — IRC §1291 — Interest on tax deferral (excess-distribution regime)
IRC §1297 — IRC §1297 — Definition of a passive foreign investment company
IRS Form 8621 — About Form 8621 — Information Return by a Shareholder of a PFIC or QEF
31 CFR §1010.350 — 31 CFR §1010.350 — FBAR (FinCEN Form 114) filing requirement and $10,000 threshold
FinCEN Form 114 (FBAR) — Report of Foreign Bank and Financial Accounts (FBAR)
IRS Form 8938 — About Form 8938 — Statement of Specified Foreign Financial Assets
IRC §6038D — IRC §6038D — Information reporting of specified foreign financial assets (Form 8938)

Primary sources (Cornell Legal Information Institute for the US Code and CFR; IRS.gov for forms, procedures, and treaty documents). This page is general information, not individualized tax or legal advice.

Atamatax provides tax preparation support and educational resources. This website does not constitute legal or tax advice.

Frequently asked questions

Is my NISA account a problem for U.S. taxes?#

The U.S. generally does not treat a NISA as tax-free, and the Japanese funds inside can be classed as PFICs, which carry additional reporting. Many Americans in Japan review their NISA holdings carefully before filing. This is informational, not individualized advice.

Does the U.S.–Japan tax treaty mean I don't have to file?#

No. The treaty and totalization agreement can reduce double taxation and affect where social contributions are due, but U.S. citizens and Green Card holders still file a U.S. return and report foreign accounts. How the treaty applies depends on your facts and is worth confirming.

Do Americans in Tokyo still need to file U.S. taxes?#

In most cases yes — the U.S. taxes citizens and Green Card holders on worldwide income regardless of where they live. Foreign tax credits and exclusions often reduce or eliminate the U.S. tax owed, but reporting (including the FBAR) can still be required.

Does Atamatax work with people based in Tokyo?#

Yes. Atamatax provides fixed-fee U.S. tax filing support for U.S. citizens and Green Card holders living abroad, including Tokyo. The final quote depends on your documents and tax situation.