There are 14 deductions from income for individual tax return. (Please refer to the past blog topic.)
If you apply the deductions for your individual tax return, you can reduce your taxable income and pay payment.
Two of them are related to your family. They are called "Deductions for spouse" and " Deduction for dependents". If you have any dependents or spouse (relatives) living outside of Japan and you want to apply the deductions for them, you need to prepare the documents to apply the deductions. If you are an employee, you need to submit the two documents below to your employer.
Note : If your family lives in Japan with you, you can apply the deductions in another way. It is an easier way than the ones indicated below.
1. Documents which prove that the relatives residing overseas are your relatives
Documents issued by a foreign government or a foreign local government, including the name, date of birth and address or domicile of the relatives residing overseas
2. Documents which prove payments you made to relatives residing overseas in the year for their living or education expenses
a. Documents issued by a financial institution which prove payments you made to relatives residing overseas through exchange transactions of the financial institution or a copy of such documents
b. Documents issued by a credit card company which prove that relatives residing overseas have used a card issued by the credit card company for purchasing products, etc. and thereby have received from you the amount equivalent to the amount spent with the credit or a copy of such documents
Example
You are an employee in Japan. Your two kids and wife are living in the U.S.
Your kids are high school students and your wife is a housewife who does not earn any money.
You want to apply the deductions related to your kids and wife from income.
What you need to do
You need to prepare the documents which show your relationship with your kids and wife. The documents must be issued by the national or local government. e.g. Birth certificate and passport of them
Furthermore, you need to prepare the documents indicating any cash transfers between you, your two kids and your wife.
e.g. Transfer request document and credit card statement which you spend money for your kids and wife
Finally you submit the documents to your employer for the year-end adjustment.
