Rewritten in October 2026. This guide now focuses on when you can file on your own and the items Japanese expats most often miss.
You can file a U.S. tax return yourself with software such as TurboTax. But returns for Japanese expats and residents often include items that are easy to miss when you simply answer the software’s questions: accounts and income in Japan, and the special rules for the year you arrive or leave.
This guide, written by an IRS Enrolled Agent, explains who can usually file on their own, who is better off with a professional, and what to watch for if you use software.
The short answer: who can file alone, and who should get help
| Your situation | Filing yourself with software | Consider a professional |
|---|---|---|
| Only U.S. wages (W-2), and you lived in the U.S. all year | Usually fine | — |
| Accounts in Japan that totaled more than $10,000 at some point | Doable if you also file the FBAR | Many accounts, or insurance or investment trusts too |
| Rental income, dividends or a pension from Japan | You need to enter the foreign tax credit | Unsure about currency conversion or the tax treaty |
| The year you moved to the U.S. or back to Japan | Difficult | Recommended (it may be a dual-status year) |
| A nonresident for the whole year | Your software must support Form 1040-NR | Recommended |
| Japanese investment trusts or NISA, shares in a Japanese company, an inheritance or gift from Japan | Check whether your software supports the forms | Recommended |
| Self-employed, or lived or worked in more than one state | Possible but time-consuming | Unsure about expenses or state allocation |
As a rule of thumb, a year with only U.S. wages and little connection to Japan is usually fine with software. In a year with assets or income in Japan, or the year you arrive or leave, the hard part is not filling in the forms but knowing which ones you need.
Five things people miss when filing with software
1. The FBAR is filed separately from your return
If your bank, brokerage and other accounts in Japan totaled more than $10,000 at any time during the year, you need to file an FBAR (FinCEN Form 114). The FBAR is not part of your tax return. You file it separately through FinCEN’s BSA E-Filing System. It is due April 15, with an automatic extension to October 15.
TurboTax’s own help page also says the FBAR is separate from your tax return and is filed on the government’s BSA E-Filing website. Finishing your return in the software does not take care of the FBAR.
2. Form 8938 goes with your return
Separately from the FBAR, you attach Form 8938 to your return when your foreign financial assets exceed certain amounts. For an unmarried taxpayer living in the U.S., that means more than $50,000 on the last day of the year or more than $75,000 at any time during the year. The two filings cover different assets and use different thresholds, so some years you need both.
3. Income and taxes from Japan must be converted to dollars
Every amount on your return is in U.S. dollars. Rent, dividends and wages from Japan, and the taxes you paid in Japan, are converted to dollars following the IRS rules. If you claim the foreign tax credit (Form 1116) for taxes paid in Japan, you also need to separate your income by category. For the steps in TurboTax, see how to report Japanese rental income and dividends on TurboTax.
4. The year you arrive or leave may be a dual-status year
In the year you move to the U.S. or back to Japan, you may be a resident for part of the year and a nonresident for the rest. That is a dual-status return. According to the IRS, you cannot take the standard deduction on a dual-status return, and you generally cannot file a joint return (unless you elect to file jointly with a U.S. citizen or resident spouse). You file the main return for your status at year end and attach a statement for the other part of the year.
The IRS’s free volunteer program (VITA) treats dual-status returns as out of scope, which shows how tricky they are. See our guide to dual-status returns for details.
5. Inheritances and gifts from Japan go on Form 3520
If you received gifts or inheritances totaling more than $100,000 in a year from a nonresident individual, such as a parent living in Japan, you report them on Form 3520, even when no tax is due. Form 3520 is mailed to its own IRS address, separately from your return. It is generally due April 15 (October 15 if you extended your income tax return).
If you file yourself
- Gather your documents: besides W-2s and 1099s, have statements showing your account balances and income in Japan (see the tax documents checklist)
- Keep last year’s return at hand: some numbers, such as carryover losses and depreciation, come from prior years
- Do not forget your state return: if your state has an income tax, you file a state return too, and possibly one for any other state you lived or worked in
- Check your Japan reporting: decide whether you need the FBAR and Form 8938, each by its own test
- Check which forms your software supports: Form 1040-NR, dual-status returns and reporting for Japanese investment trusts are not supported by every program
If you are choosing between programs, see our comparison of TurboTax and H&R Block for Japanese expats.
If you hire a professional
Check the preparer’s credentials (EA, CPA or other preparer) and their experience with Japan-related returns. See how to choose a tax preparer who speaks Japanese and how much tax preparation costs.
CLT NY INC. prepares U.S. individual tax returns for Japanese expats and residents in English or Japanese, including for people who have moved back to Japan. If you filed yourself last year, send us that return and we will take it from there. If you are switching from another preparer, our switch campaign takes 50% off last year’s fee (up to $500 off, first year only). Estimates are free.
FAQ
Q. Can I report income from Japan in TurboTax?
You can enter rent, dividends and other income from Japan, but you need to convert the amounts to dollars and enter the foreign tax credit. The FBAR for your Japanese accounts is filed separately on FinCEN’s website.
Q. Can a nonresident use TurboTax?
Nonresidents file Form 1040-NR, which is a different form from the Form 1040 used by residents. Check before you start that your software supports Form 1040-NR.
Q. I filed myself last year. Can you take over this year?
Yes. With last year’s return we can carry forward the numbers that continue into this year.
Q. What if I find a mistake on a return I already filed?
You can correct it with an amended return (Form 1040-X).
Sources: IRS, Report of Foreign Bank and Financial Accounts (FBAR); IRS, Comparison of Form 8938 and FBAR requirements; TurboTax, How do I file an FBAR report (FinCEN 114)?; IRS, Foreign currency and currency exchange rates; IRS, Taxation of dual-status individuals; IRS VITA, Dual-status aliens (out of scope); IRS, Instructions for Form 3520; IRS, Instructions for Form 1116. This article provides general information and is not individual tax advice.
For the 2027 filing calendar, the documents to gather and your filing options in one place, see our U.S. tax filing guide 2027 for Japanese expats.
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