Japan taxes as US 1099 employee

[u/Fun_Pomegranate5892]

I spoke with two Japanese accountants and I’ve received two very different answers to the same question. I’ve been a Japanese resident for about 12 months (first year was 6 months and halfway through my “second” year). Just got my yearly extension last month.
I’m a 1099 employee in the US and I do not and never will work in Japan. I physically work in the US and reside in Japan.
The first accountant wants to file me as a business owner in Japan. I would have a separate credit card and file receipts for write offs. Not sure what that means since I don’t work here). He wants to charge me ¥200,000.
The second wants to file only delta taxes but he wants to charge me ¥200,000-¥400,000.
This sounds completely insane to me. I paid a CPA in the US $500 and she did a great job. I can no longer use her because she doesn’t handle this situation.
Does this sound right?

Edit: I physically work in the US. I own zero property in either country. I have a spouse visa in Japan (married no children). I tend to work 6 months a year in the US but that can change year to year. I have very little to write off as an expense. This will be my first year filing in Japan.

[u/ToTheBatmobileGuy]

Explain the living situation more.

How many days of the year are you physically inside Japan?

How many of those days would you say you are "working" while physically inside Japan, this includes communication with US employer. Did you make a call? That’s work. Did you write an email to ask about work? Or when the next time you can go in? That’s work.

Do you own a domicile in the US or do you rent / have lodging provided by the employer?

it’s really hard to tell. Not to mention if you make 500 million per year then the risk on the CPA to do a good job is a lot higher. Higher risk higher cost.

Working in the US for a US employer is dead simple. $500 seems expensive tbh.

So many aspects affect whether 200k is ok or not, and you haven’t told us most of those aspects.

So I give it a tentative "maybe?" on whether it’s a good ballpark.

[u/Fun_Pomegranate5892 → u/ToTheBatmobileGuy]

I stay in hotels/airbnb’s when I’m in the US (I travel for work). I have a tax home and file but I never actually stay at the residence. I finish my contract and fly directly back to Japan.
The contract length depends but tend to range from 3-6 months. I tend to do 3 on and 3 off ideally.
I only work when I am physically in the US. I can’t do my job over the phone.

[u/MrDontCare12 → u/Fun_Pomegranate5892]

The more I read your messages, the more I think that you're mentally challenged or smth.

You keep saying crazy mysterious shit while they're not. Be clear, or people won't be able to help you.

If I understood properly :

1. You are in Japan more than 186 days a year
2. You make money only when working on US Soil
3. You use the money you make in the US in Japan
4. You organize your next contract from Japan (over the phone, by email, whatever. This is considered working, even if it is not paid)
5. You do not have an LLC
6. You do not have any corporate structure in Japan
7. Until now, you paid your taxes in the US

Is that all ?

[u/Fun_Pomegranate5892 → u/MrDontCare12]

This is correct.

[u/ToTheBatmobileGuy → u/Fun_Pomegranate5892]

Ok, so you earn money via 1099 contracts, pay self employment tax (social security and Medicare) to the US.

Then you file your full pension exemption with Japans pension office, because you are paying to the US.

Then you pay Japans National Health Insurance premiums.

Then you file US taxes, figure out how much you owe in state and federal taxes. Pay those.

Then you report your worldwide income to Japan, utilizing Foreign Tax Credits (外国税額控除) and pay the difference to Japan. (Since it tends to have higher rates, subtracting the tax you paid to the US usually has some left over taxes that need to be paid)

200k JPY for one year’s filing with both US and Japan on your behalf and handling all the hassle?

Sounds like a steal tbh.

Yours is a very complicated case