Korean Job Discussion Forums

[kerose]

Can any US citizens shed some light on tax filing requirements?

It appears there is a foreign earned income exclusion of $82,400 as well as a foreign housing exclusion. To qualify for the exclusions, the taxpayer must meet the bona fide residence test that includes being in a foreign county for an entire tax year, or meet the physical presence test of being in a foreign country for 330 days during a period of 12 consecutive months...

I'm not really sure how these conditions work...

Does your Korean employer provide you with tax documents that indicate pay and the value of the housing?

I suppose if my employers don't report any income to IRS I can assume it is excludable and not include it in my 2006 US tax returns.

How do you deal with this mumbo-jumbo?

[krats1976]

Ah... tax time again.

Yes, you have to report what you make here.

It's pretty simple. If you came to Korea last year and haven't been here a full year yet, file an extension & wait to file until you've been here 12 months.

When you're ready to file, cough up about $20 for some basic tax software (I use TurboTax) to make your life easier. Then, add up how much you got paid (plus severence), convert it to US dollars using something like www.xe.com & plug that in when it asks for income not reported on a W2.

Same goes for housing & travel expenses... just convert on your own. TurboTax opens up a spot to type an explanation for housing & travel allowances so you can explain there how you arrived at your figures. The whole process is self-explanatory (the only catch is that you can't e-file since you're using a foreign address).

No, you don't need any documents. I've never been asked for any. Most of us don't make enough money for the IRS to be too fussed about us.

[movybuf]

The answers to your questions are easily available on the web. Try the IRS's website.

I have been here for five years, and I filled out my US taxes for the first time this year! I don't know I needed to do it! Woops!

The 2555EZ form is, as the name implies, very easy to fill out. It needs to be filled out and attached to your W2 form. If you qualify for the 2555EZ form, you don't need to supply documentation for your housing ( I think).

There is some good information on the web about it. Just search around for a while.

[MollyBloom]

[Sine qua non]

You have to report your income, whether or not your employer gives you any documents showing your earnings. I go by the money figure in my contract (converted to dollars) plus any additional income if I earned any outside of my main job.

To see if you qualify, check out http://www.irs.gov/publications/p54/ch04.html or read through Publication 54 about the bona fide residency and physical presence tests.

To file an extension, print out Form 4868: http://www.irs.gov/pub/irs-pdf/f4868.pdf . This is automatic. Also be aware: because you live abroad, you are automatically entitled (without filing any document) to a two month extention. Because you live abroad, your tax return is not due (to be postmarked) until June 15. Filing for an extension extends this two additional months (to August 15).

[krats1976]

[xingyiman]

Ha, they can send me bills all they want I am not paying another cent of tax. The IRS can reposses my telesope from my brother if they so choose casue thats the only thing I own there and I am never goiong back.

[kerose]

thanks for the information.

i understand my income in korea is taxable. dammit.

however, the IRS cannot double tax foreign earned income... so, I think americans are allowed to apply the amount of income tax paid in Korea to a deduction from his or her taxable income.

has anyone done this?

it appears, if I go this route, i am then disqualified from the "Foreign Earned Income" exclusion as well as the "Moving Expense" and "Foreign Housing" exemptions. not sure which option is better.

[Zyzyfer]