More and more people who worked in the United States for ten years or more, or who can combine coverage under the U.S.-Japan Social Security Agreement, are retiring in Japan and collecting U.S. Social Security there. The practical questions are surprisingly poorly understood: Where do you apply? Can benefits be paid into a Japanese bank account? What is the Form SSA-7162 that arrives in the mail? Which country taxes the benefit? This article explains how to claim and receive U.S. Social Security while living in Japan, the reporting duties that continue during retirement, and the tax treatment in both countries, reflecting the 2025 repeal of the WEP and other current rules as of 2026.
Eligibility: 40 Credits, or Totalization Under the Agreement
U.S. retirement benefits generally require 40 credits (roughly ten years of covered work). If you have fewer, but at least six U.S. credits, the U.S.-Japan Social Security Agreement, in force since October 2005, allows your Japanese pension coverage to be counted toward eligibility, with the benefit prorated according to your U.S. coverage. Benefits can start as early as 62 at a reduced amount, are unreduced at full retirement age (67 for those born in 1960 or later), and increase if delayed up to age 70.
The WEP has been repealed
For years, people receiving a pension from work not covered by U.S. Social Security, such as the Japanese employees’ pension, saw their U.S. benefit reduced by the Windfall Elimination Provision. The Social Security Fairness Act, signed January 5, 2025, repealed the WEP and the GPO for benefits payable from January 2024 onward, and retroactive payments have been made to those previously affected. There is no longer any reduction of U.S. benefits on account of a Japanese pension.
Applying and Getting Paid from Japan
- Where to apply: residents of Japan apply and ask questions through the Federal Benefits Unit (FBU) at the U.S. Embassy in Tokyo. You can apply several months before you want benefits to begin. If you are combining Japanese coverage, you can also file an agreement claim through the Japan Pension Service.
- Documents: your SSN, passport, proof of birth (such as a family register extract), marriage documents, U.S. earnings records such as W-2s, and Japanese pension records.
- How you are paid: international direct deposit to a Japanese bank account is available and is set up with the Japan-specific direct deposit form (SSA-1199-JA). Deposits to a U.S. bank account you still maintain are also possible. Paper checks are discouraged because of loss risk and collection delays.
- Payment dates: benefits are paid a month in arrears on a date determined by your birth date. Deposits to a Japanese account pass through currency conversion, so the yen amount varies each month.
Duties While Receiving Benefits: Form SSA-7162 and Reporting Changes
Beneficiaries living outside the U.S. periodically receive a Foreign Enforcement Questionnaire (Form SSA-7162, or SSA-7161 for representative payees). It confirms that the beneficiary is alive and asks about changes in address, marital status, work, and other pensions. Depending on age and whether there is a representative payee, it is sent every one or two years. If it is not returned, payments are suspended, so complete, sign, and mail it back to the return address in the enclosed envelope before the deadline. A change of address must be reported to the SSA separately, as must marriage or divorce, the death of a beneficiary, and the start of work in the U.S.
Taxation: Exempt in the U.S. for Nonresidents, Miscellaneous Income in Japan
United States
Under domestic law, Social Security benefits paid to a nonresident alien (someone who is neither a U.S. citizen nor a green card holder) are subject to 30% withholding on 85% of the benefit, an effective 25.5%. Under the U.S.-Japan tax treaty, however, U.S. Social Security benefits paid to a resident of Japan are exempt from U.S. tax, and IRS publications list Japan among the exempt countries. The SSA applies the exemption based on your country of residence; if tax is being withheld, submit Form W-8BEN to the SSA to claim it. U.S. citizens and green card holders living in Japan remain subject to U.S. tax (up to 85% of the benefit is taxable depending on income) and are also taxed in Japan, so the double taxation is relieved through foreign tax credits.
Japan
U.S. Social Security received by a resident of Japan is treated as a foreign public pension and classified as miscellaneous income of the public pension type, eligible for the public pension deduction. Unlike Japanese pensions, no Japanese tax is withheld, so the no-filing rule for pension income of 4 million yen or less does not apply, and a return must generally be filed every year. Convert each payment at the TTM rate on the payment date. The reported income also feeds into inhabitant tax and National Health Insurance and long-term care premiums.
| Type of beneficiary | U.S. tax | Japanese tax |
|---|---|---|
| Nonresident alien living in Japan (e.g., Japanese national) | Exempt under the treaty (file W-8BEN with the SSA if withheld) | Miscellaneous income (public pension type), annual return required |
| U.S. citizen or green card holder living in Japan | Taxable (up to 85% of benefits) | Miscellaneous income, annual return; double taxation relieved by foreign tax credits |
What About Medicare?
Medicare covers care only inside the United States, so for someone who will stay in Japan, the Part B premium ($202.90 per month at the standard rate in 2026) buys nothing. You can drop Part B, but if you later return to the U.S. and re-enroll, a permanent late enrollment penalty of 10% for each full 12-month period without coverage applies. Decide based on the likelihood of moving back.
Frequently Asked Questions
Can I receive both my Japanese pension and U.S. Social Security?
Yes. Each system pays according to its own coverage. With the WEP repealed, the Japanese pension no longer reduces the U.S. benefit. Japanese pensions are subject to Japanese withholding, while U.S. benefits are not, so both are combined on your Japanese return.
Can my spouse or survivors receive U.S. benefits?
Spousal benefits (up to 50% of the worker’s benefit) and survivor benefits may be available if the requirements are met. For a spouse who is not a U.S. citizen and lives outside the U.S., additional conditions such as prior U.S. residence apply, so check with the FBU.
I forgot to return Form SSA-7162 and my payments stopped. What now?
Contact the FBU in Tokyo and resubmit the questionnaire. Once your continued eligibility is confirmed, payments resume, including the amounts withheld during the suspension.
This article is provided for general informational purposes only and does not constitute individual tax advice. Please review the latest SSA and IRS guidance and Japanese tax law, and consult a qualified professional before acting.
Summary
U.S. Social Security can be claimed with 40 credits or through totalization under the U.S.-Japan agreement, applied for through the FBU in Tokyo, and paid into a Japanese bank account. Returning the Form SSA-7162 questionnaire every one to two years is a condition of continued payment. For tax, a nonresident alien living in Japan is exempt from U.S. tax under the treaty but must file a Japanese return every year reporting the benefit as pension-type miscellaneous income. With the WEP repealed in 2025, a Japanese pension no longer reduces the U.S. benefit. Settle the Medicare Part B question as part of your retirement plan in Japan.
Related Articles
- Japanese Pensions and US Social Security: How Totalization Under the US-Japan Agreement Can Qualify You for Benefits
- The U.S.-Japan Social Security Agreement: A Comprehensive Guide to Totalization and Certificates of Coverage
- US-Japan Pension Taxation and Tax Treaty Articles 17 & 18: A Comprehensive Guide to the “Taxable Only in Japan” Rule for US Pensions (401k/IRA) for Japanese Residents and Dual Taxation Avoidance
- Withdrawing a 401(k) or IRA After Returning to Japan: 30% Withholding and Relief Under the US-Japan Tax Treaty
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