u/4dachi

Feeling a bit dejected after visiting the city hall and getting absolutely zero useful advice today.

I'm a sole proprietor and my taxable income last year was just short of 2.2 mil yen. My income tax was 90k which is totally manageable, but my municipal tax is ~200k, pension is another ~200k, and national health insurance is over 300k. Add that with my half of the property tax and home insurance and I end up paying well over 900k a year.

My monthly living expenses are around 100k, with roughly half that being my portion of the mortgage payment (loan is in spouse's name). In terms of luxuries I do have a gym membership and eat a lot but I only shop at value grocery stores. Life is not bad here but it is certainly a lower standard of living than what I was accustomed to. These days there is pretty much nothing left once my bills, taxes, and insurance is paid.

I'm admittedly pretty new (and ignorant) to the Japanese tax system and that seems to be the root of my issues. In hindsight hiring an accountant would have been cheaper than eating all these taxes and premiums. I assume my biggest mistake was not deducting my portion of the mortgage (technically rent? as I am not on the loan) paid when I work from a home office.

Any advice for a sole proprietor like me to cut down their taxes and premiums would be greatly appreciated. I'm a total newbie at this and I'm sure I missed a lot of things on this filing. I want to make sure I don't screw up as badly for next year.

Thanks!