Dependent Children Deduction in Japan: A Complete Guide
What is the Dependent Children Deduction?
Dependent children deduction (扶養控除 - fuyō kōjo) is a tax benefit in Japan that allows taxpayers to reduce their taxable income for each qualifying dependent child they support. This deduction helps families offset the costs of raising children and provides significant tax relief for parents.
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Eligibility Requirements
To claim the dependent children deduction, the following conditions must be met:
- Age Requirement: Child must be under 23 years old as of December 31st of the tax year
- Income Threshold: Child's yearly income must not exceed ¥480,000
- Relationship: Must be your biological child, adopted child, or stepchild
- Residency: Child must be living in the same household or be supported by you if living separately for education
Deduction Amounts
| Dependent's Age Category | Deduction Amount | Additional Notes |
|---|---|---|
| 16-18 years old | ¥380,000 | Standard dependent deduction |
| 19-22 years old | ¥630,000 | Special deduction for higher education |
| Under 16 years old | ¥0 | Eligible for Child Allowance instead |
Important Notes:
- Children under 16 are not eligible for the dependent deduction but qualify for Child Allowance (児童手当 - jidō teate)
- Income is calculated after deducting allowable expenses and exemptions
- Scholarship income is generally not included in the income calculation
Special Cases and Considerations
There are several special circumstances that affect the dependent deduction:
- Overseas Dependents: Children studying abroad can still qualify if you provide more than 50% of their financial support
- Disabled Dependents: Additional special disability deduction may apply (¥830,000)
- Shared Custody: Only one parent can claim the deduction, typically the primary provider of financial support
How to Claim the Deduction
The dependent deduction can be claimed through two main methods:
- Year-end Tax Adjustment: Submit the dependent declaration form to your employer during year-end tax adjustment
- Tax Return: Include dependent information when filing your annual tax return if you file independently
Required documentation includes proof of relationship (family register or birth certificate), proof of income for dependents over 16, and proof of student status for dependents aged 19-22 if claiming the special education deduction.