Death and Taxes

There are two things that are certain about Japan. Taxes in particular can be the death of anyone.

Ok, it is not so cool. I am not sure about how much I would have to pay in America, but here I certainly have to pay an arm and a leg for not even being full time employed. I mean, yes, I make more than just about every other girl my age here. Actually I probably average about probably all women in Japan. This would be because they are domesticated house gnomes that waddle about dressing like a cheap night and pushing around their kids. But we aren't talking about them. We are talking about taxes. Statistics show they they can pull in an astounding 1,900,000 yen a year. It looks like a lot, but really it is about 19,000 dollars. That is about average. Men tend to make more. Still a very male dominated society.
So anyways, after my first 'year' in Japan, I actually got paid back for my taxes. This is when you remember that that 'year' consisted of the months August to December for that tax period. And I got paid back very little. Perhaps 3000 yen and change. A nice dinner. Really nice.
This last year, I worked nearly every one of those months, or at least 175 days worth of the year, and I got rewarded for my services with a very nice heavy tax. The funny thing? My taxes pay me. HAH!
Whats more, is that heavy tax right there? We, the gaijins of Japan, actually pay less (albeit not by much) than the citizens. And many of the citizens are kind of furious about it. They want us to be paying the same amount as them. And to enrage them further, there are many gaijins that don't pay. And continue to live here. Perhaps tax evasion is not as big of an issue here in Japan, and people just don't get arrested or deported for it or whatever, but a large amount of self proclaimed people (not working for anyone I am affiliated with) that they just don't pay taxes with no repercussion. Perhaps they have never tried to leave the country and have a fake address registered though...

And for anyone wondering what you should do if you are still an American citizen and living in Japan and what exactly you need to be doing about taxes, you want to be filling out

• 255EZ
• 1044EZ

The 2555EZ form. It essentially is a tax exemption form that you can only fill out that if you made less than 95,000 US dollars outside of the US. And if you are making that much, you need to be getting me a job! You would also fill out the 1044EZ form.  This form pretty much states that you made no income in America for that calendar year.
This process prevents you from being double taxed in both American and Japan.

In addition to the awesome tax money that I have to pay, which is over a thousand dollars, or 100,000yen, your health insurance will also go up.
Your health insurance is at a minumum in the first place because it is based off of what you made the previous years. So my first year, it was about 1,500 because the previous year I was unemployed in Japan. My second year was about the same because I had only worked 3-4 months the previous year in Japan; thus the income for that year was so low, it was considered unemployed. This year however, I worked a full year the previous year and have the taxes to prove it, thus my health insurance skyrocketed. I am now to pay somewhere between 20,000 and 30,000 yen, or 200-300 dollars every month. And this is still considered the kokumin hoken that I wrote about previously. If you have the shakai hoken (shakai meaning society so basically declaring yourself a working member of society), you will pay a lot more. But if you have the shakai hoken, then your company must pay for half. So if your total there was 80,000 yen, you company would pay 40,000yen and you the other half. You can see how the kokumin hoken is still cheaper. Also since I am not considered a full time employee, I would not be eligible for the shakai hoken. 
So pretty much at once, within the same week, you will get hit with a nice heavy tax and a much larger health insurance bill. My total is probably over 300,000 yen. Being an adult sucks

Japan's Pricetag

What the What?! Do I really need $5000.00 to move to Japan!?

No. You need more than that.


Ideally you should really move to Japan with at least 500,000￥.

At this point most people are like what the heck?! I am moving there to make money, not to spend all of it! Well, it's a trade off. It's crappy I know, but you need money to start a new life somewhere, anywhere.




Don't want to buy in?
If you don't want these money worries, my advice is to move to Korea. The EPIK program is nice and generous and pays for your flights (they pay a set fee so if you get a cheap flight, you really tend to make money - I think my flight was $480.00 and they reimbursed me somewhere around a grand). In addition they house you for free and give you three free meals a day during training. I apologize, I can't seem to remember if they pay you for the training or not... But they DO they pay you exactly a month from when you start. They also provide you with free housing and furnishing for your entire time in Korea. Sometimes, as in cases like mine, they even pay for your bills; that is because the place I stayed in was so cheap that they had to find a way to use the rest of my budget for housing. However, if you place costs more than the housing budget, then you may end up paying a little bit extra a month. I am talking like a hundred dollars or less.


So what do I need all these monies for?

The biggest thing you need money for is your apartment. It costs a nice handsome price for something that could equal a New Yorker's closet space. Why does it cost so much? Japanese apartments have a lot of hidden fees and such. You have to pay for things like key money, insurance and a few months rent ( just in case).


So now I have a place what about the rest of the money?
You need it to furnish your place. Some places and contracts, especially ones with Leopalace, will have furnishings including: a TV, bed frame, TV stand, table, microwave, fridge, and washing machine. Please note that if you want to go with your own place you have to buy all these things. If that is the case, you can find pretty sweet deals at the local recycle shop. But overall, the majority of these appliances can be pretty expensive in Japan. With that being said I still bought my toaster oven at a recycle shop for 1,500￥.

Furnishings check.

Now you need food and dishes and a futon! That last one is extremely important. Yes, if you work for Interac they will offer you a nice deal on bedding, including a pillow, kake and shiki futon (the one you sleep on and the comforter), as well as all the accompanying casings. But if you are picky about bedding, then get your own! I got a nice shiki futon from Muji and Ikea has cheap down comforters that are also very nice and plush. Between those two stores, you should have everything you need for sleeping and eating in your apartment. Beware though, some placements have the misfortune of being nowhere near an Ikea (not being near a Muji...don't be preposterous), if that is the case Konan (コナン) is a wonderful alternative.

Apartment check. Furnishings check. Everything else check.
Now what?
After that, and perhaps most importantly, you need a phone. You are require to have one so that your company can contact you in a pinch. Sure, you can get a pay as you go one, but if you are planning on staying in Japan longer, I personally really recommend getting something with a bit more snazz. Japanese smart phones have truly unlimited data, also you can use them to pay your bills by simply walking in a store (however, I think this may be an android only service), or use them for a nifty app that tells you exactly when trains arrive and the fastest route from point A to B (Jorudan). Overall they are just really useful.
Can't I just use my old phone?
Short answer. NO. You can absolutely not use your old phone. Also Japanese stores do not sell only the SIM cards either. So quit asking. I swear that is like the first thing that people fresh off the boat ask. Can I buy a cheapo phone and switch the SIM card? Still a neg. The SIM card you buy has to match the functions of your phone (ie: data plans). This leaves you with two choices, go cheap or go all the way. Personally, I have an iPhone. They had a deal for Japanese citizens that made it free when they purchased it. NOT being a Japanese citizen I paid 46,000￥ for it. However, my monthly rate is cheaper.



OK so now for a break down of your start up costs:

Apartment Total: 198200￥

• Key Money (non-refundable deposit): 50,500 ￥
• Key Exchange Fee: 3,150 ￥
• Fire Insurance (good for 2 years): 20,000 ￥
• Data Entry Fee: 2,100 ￥
• Rent for August (Partial): 12,410 ￥
• Rent for September : 55,020 ￥
• Rent for October : 55,020 ￥

Furnishings at recycle shop prices! 57,000 ￥

• Toaster oven 1,500￥
• Microwave 5,000￥
• Rice cooker 3,500￥
• Fridge 8,000￥
• Washing machine 12,000￥
• Bed 8,000 ￥
  (find online or at sayonara sales) 
• TV 10,000￥
  (for whatever reason even the analog ones are still expensive!)
• Kotatsu 9,000 ￥
  (including table and kotatsu futon)
  (new its pretty hard to fund used) 

Apartment oddities 30,600

• Dishes 6,300￥
  (pots, pans, utensils, plates, bowls, mixing bowls, spatula, ladle, chopsticks)
• Futon x2 10,000￥
• Sheets 3,000￥
• Towels 1,200￥
• Bathroom supplies 800￥
  (toilet paper, scrubber...)
• Shower supplies2,600 ￥
  (shower rack, shampoo, conditioner, tooth brush, tooth paste, soap...)
• Kitchen supplies 800￥
  (trash cans, soap, sponge...)
• Cleaning Supplies 1,500 ￥ 
• Closet stuff 1,400 ￥
  (coat hangers/organizers)
• Shelving 500 ￥ per
• Fan 2,500 ￥

Phone (varies)

• iPhone 46,000 ￥ 
• pay as you go4,000 ￥ 

What do you do with all the left over money? 

Eat. 

Pay bills. 

Transportation. 

These are all things you need to consider as well. Since you are not going to get paid for possibly 2 months. But you get paid for training? Yes this is true...However this will come with your first pay check. For most that pay check comes the month after they start working. Hypothetically, say you start working in April. You will not get paid until the end of May. Therefore, if you come over in March for training, you need to make sure you have enough money to cover food expenses (which are higher) until you get paid. Personally I go through about a 10,000￥ a week. I cook all of my meals. You can of course pay much less. Also since you pay for three months of your apartment, you clearly don't have to worry about paying that, say for three months, but you do need to worry about paying for the gas, electric, and water bills for each month. In addition to those bills, you will also get your phone bill too. And on top of that, there is your insurance that you need to pay every month. 

And I know some of you right now might be saying 'but they said I will get paid for transportation'. And you will. But it is a reimbursement. You get reimbursed the exact amount that you spend for transportation. AFTER you spend it. So you need to have enough to make it to your first pay check and then they will reimburse you for all the money that you previously spent on transportation. Also, they say up to 20,000￥ they will typically not go too far over it, and on the flipside they will only pay you for how much it costs you to get to your schools and get home from them (so no funny business!). If that means it is only 6,000￥ then they only reimburse you for 6,000￥. 

Since Japan is just so expensive, please do not fool yourself into thinking that once you obtain 500,000￥ that that is the end all and you are set to go off to Japan. Please notice I did not cover a single before-cost in this blog. This is largely because I did not come from America, or the U.K. or any place that could be useful to you. I came from Korea. And as such my process was very different from your own. But for curious readers I highly recommend checking out The Rising Daikon's breakdown of the monetary units required for that. 

NOW! 

With all that being said, and for people still freaking out about Japan's pricetag, companies, like Interac, will often give you a cash advance and can help you out a bit (which you pay off bit by bit via your paycheck in an amount that you find convenient). Other companies, like JET, will pay for your plane ticket over, as well as part of your housing. Additionally, you can choose things like cheap housing, only eatting things from the dollar store, minimizing your furnishing (you don't need that toaster), sleeping on the floor (Japanese style!), which are all valid and available options to a penny pincher looking for adventure. But my advice, make the most of your time here...whatever that means...Just live and don't regret it!

The age old debate: JET vs. Interac

This is post is largely due to the JET and Interac job controversy of which is better. 

Recently I was thrown in the debate of which is better with a fellow ALT...a JET. I was sincerely disappointed to find them uneducated in the topic and have therefore made this article to tell people that one is not better than the other for any one specific reason.

 It all depends on a personal preference. For myself, Interac is much better largely due to the choice of placement and the vacation time. Choice of placement was the most important thing to me. What you have to do when deciding if a job is right for you, is to determine what you value in it. I can promise you that JET pays for a lot more things and then, on top of that, they will pay you more for your work as well. So if it is money you are after, look no further. 

Here I have made a table, based on a lot of research and the help of my friend Ben Brannan that displays each company's values and what they have to offer. So I hope you will find this very helpful if you are considering a job in Japan. 

	JET (Japan Exchange and Teaching Programme)	Interac
Salary	¥3.6 million per year ¥300,000 a month	Varied ¥250,000 a month Rural placement with a vehicle ¥240,000 a month Rural placement ¥230,000 a month Urban/Suburban placement Months March, April, July, August, and December are prorated according to the number of days worked. ~¥13,000 a day (rate may vary) domestic recruit  Note that once you have completed a contract that you are then considered a domestic recruit. Rate varies from branch to branch and city to city. ¥20,000 a month (additional) Transportation costs.
Vacation	10 days leave (average 12-20) 15 national holidays minimum	10 assigned paid vacation days 3-4 weeks in the winter  (prorated salary) 2-3 weeks in the spring  (prorated salary) 1 month+ in the summer  (prorated salary) All national holidays
Housing	Is subsidized up to 50% Employer will find for you	Not subsidized Employer will find for you
Airfare	Round trip airfare is paid for Note that return airfare is only paid for upon contract completion.	Not paid
Location	Minimal to no choice (circumstances of choice: need to be near a hospital or have a spouse who is already settled in a specific city) Mostly rural Cannot reject given placement or will face termination as a candidate and rejection of any future applications.	Choice of region Can reject given placement and the placement office will find a new placement offer. Rural or suburban placements depending on preference  Large city placements, like Tokyo or Osaka, typically go to people with experience.
Number of Employees	4,334 ALTs (2010)	2,500 - 3,000 ALTs
Insurance	Required. National Health insurance Pension options	Required. National Health insurance or InterGlobal Insurance Pension options * Do not physically help in the acquisition of National Health insurance, as it is government issued insurance and Interac is a company (whereas JET is a government program).
Time Restraint	5 year maximum After third year the renewal process is more rigorous requiring additional interviews and essays.	None
Age Restriction	40 years of age	No limit Suggested that BoE's prefer younger candidates. Moving up to an office job and upper management is possible for older employees, but they must have first worked as an ALT.
Transfer	Limited to none	Very easily acquired  (based on the mutual needs of a BoE) Placement preference given to those with experience
Application Process	Longer process More difficult  Less likely to be accepted.  *see statistics in article	Shorter process. Easier.  Find out results quicker.
Employer	The government. You are employed by the Board of Education.	Interac. You are not regulated by the school and do not have to do things that are not sanctioned by Interac (grading papers, joining a club, making tests, etc)
Secondary Jobs	Not allowed	Allowed but cannot work for competing companies (other ALT companies such as JET) Not allowed to private tutor students from classes. (students not from your classes are acceptable)
Future Resume	Opinion: It is a government sponsored position and would likely look a bitter better on a resume.	Opinion: It will look like a typical ALT teaching job. Better than an eikaiwa.

***Application process: I discovered this interesting bit of information in the midst of my research, which could be a really important factor for some.
My references for this chart are the employees of JET, the employees of Interac and employees who have been one for a time and then the other, personal experience, as well as a few facts found from the page below as well as a few other pages. This does not mean that any of this is set in stone. Personal experiences vary. BOE's vary. Schools vary.

"The ALT applicant success rate varies from year to year. For the 2002 JET Program, 320 out of about 500 applicants were granted interviews at the Consulate General of Japan at Chicago; out of 320 interviewees, 185 were selected as short-list candidates, with 80 on the alternate list. Thus, for this year, 64% of applicants were granted interviews, and 58% were selected as short-list candidates. This adds up to an overall success rate of 37%." found at http://www.chicago.us.emb-japan.go.jp/JIC/jetfaq.html
Actually that site is full of useful information if you are researching about JET.

In recent years, I have found that JET and Interac are both always changing and progressing (or regressing). Interac has been pulling out of many areas and but still managing to grow in numbers. JET has changed their rules a lot in recent years including extending the period of stay from 3 to 5 years, as well as removing the paid for pension and health insurance, which you now have to pay for out of your salary. Also worth a mention is that the salary can possibly vary with JETs. I do have one friend who is a JET and makes a cut about the others, with ¥310,000 a month.

As far as their reputations go. I will leave that to you to research and come up with your own opinion.

Or you can check out The Rising Daikon for more information on the categorical subjects. As well as for a few case stories of both sides.

医療分 Insuring Japan

いりようぶん

or more simply put, Japanese health insurance.

Insurance is a key thing to have in Japan. Actually, you must have it. By Japanese law, you are required to be insured during your stay here ( exception: this does not include tourists). There are several methods of insurance. 

• Interglobal
•  社会保険 Shakai Hoken
• 国民健康保険 Kokumin Kenko Hoken
• 私学共済 Shigakou Kyousai

Interglobal is a foreigner special, where I am told that it will only cover you for a year, I believe this limit to be shorter; when I received my information packet and Bronze card, it was only good for three months. Possibly Interglobal is used more often as traveler's health insurance when visiting Japan. It costs 2900 yen and would be deducted from my salary. Since Interac applied for me, my insurance was linked to my salary and gets deducted from my paychecks rather than paying for it in person
.

Nevertheless, that was canceled in all of a day as I received my kokumin kenko hoken. Kokumin hoken is part of the National Health Insurance program. It is for people who are unemployed. I fall into this category, as I was not employed in Japan in the preceding year. This insurance is less than half the price of the Employees Health Insurance. I pay 2000 yen, just over 20 bucks, and it covers 70% of my medical costs. So far I have only used it for going to the dentist. Since I was already in Japan at the time and could easily do it myself, Interac did not take part in the application process. I also pay for it myself via receipt tickets that I have for each month. 

Next year I will have to graduate to Shakai Hoken, as I will have been employed in Japan the previous year. This will cost 8.2% of my salary and it will also cover 70% of my medical costs, as well as other things.

The last type of insurance I mentioned is for private companies and universities. It is similar to Shakai Hoken.

To the left is my Interglobal card and the right is my Kokumin Hoken.
You simply present this card upon entering anywhere
you would need medical or dental attention

How to get insurance:

Interac automatically applied to Interglobal for me since I was not present in Japan to apply for it myself (also just because they are nice guys and want to make your life comfortable and easy). Therefore, they said that even before arrival in Japan I was covered by insurance...I am not certain what this means, since I did not have official documentation for being covered until 2-3 weeks until after I got to Japan. However, Interac assured me that I was covered before I left incase something happens on the plane or at the airport. When it arrived on my doorstep my insurance package contained papers explaining the different programs  (bronze, silver and gold) as well as other necessary readables -- of which I had no intention of doing-- and, most importantly, this little gold card that I would carry around with me to the doctor.

Well I did away with that since it cost more, and seemed to expire in three months anyway, and applied for the Unemployed Persons Insurance, kokumin kenko hoken. To do this you simply go to your respective city office and apply for it in person. Unfortunately, no: Interac cannot apply for this type of insurance for you since it needs to be done with the applicant present. However, there was ridiculously little paperwork involved, so that I thought that they must have misunderstood my purpose. But low and behold, about two weeks later the insurance papers were delivered to my door. These papers included my flimsy but valuable insurance card and a type of receipt ticket with the value and a month stamped on each of them. You simply take the ticket for the appropriate month to any bank or post office to pay for that months insurance in person.

This is one of the insurance tickets that you receive in the mail.
You might be able to see where it says it is for December and how it is due on December 28th of 2011.
It gets stamped upon payment and acts as a receipt thereafter. 

But please note, you cannot go to a city office that is not respective to your living arrangements. They will simply wave you away and keep telling you ' No, no' followed by the appropriate city office.