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loscatalanes
Joined: 05 Jan 2007
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 Posted: Fri Aug 10, 2007 12:16 pm Post subject: Residence Certificate for US |
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As an EPIK applicant, I read: Residence Certificate" issued by a competent authority of employee's resident country
is necessary to be exempt from paing Korean tax.
My question is where do I get this in the US? I have never heard of it. Many thanks |
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wylies99
Joined: 13 May 2006
Location: I'm one cool cat!
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| Posted: Fri Aug 10, 2007 7:50 pm Post subject: |
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| That must be some crap that only applies to foreigners living in the US. I wouldn't worry about it. |
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pdxsteve
Joined: 29 Sep 2004
Location: Bundang
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| Posted: Sat Aug 11, 2007 1:21 am Post subject: Re: Residence Certificate for US |
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| loscatalanes wrote: |
As an EPIK applicant, I read: Residence Certificate" issued by a competent authority of employee's resident country
is necessary to be exempt from paing Korean tax.
My question is where do I get this in the US? I have never heard of it. Many thanks |
You can get one from the IRS by filing a form 8802, Application for United States Residency Certification.
http://www.irs.gov/newsroom/article/0,,id=123818,00.html |
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dogshed
Joined: 28 Apr 2006
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| Posted: Sat Aug 11, 2007 5:34 am Post subject: Re: Residence Certificate for US |
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| pdxsteve wrote: |
| loscatalanes wrote: |
As an EPIK applicant, I read: Residence Certificate" issued by a competent authority of employee's resident country
is necessary to be exempt from paing Korean tax.
My question is where do I get this in the US? I have never heard of it. Many thanks |
You can get one from the IRS by filing a form 8802, Application for United States Residency Certification.
http://www.irs.gov/newsroom/article/0,,id=123818,00.html |
The problem is there's a fee and it takes weeks to process. I didn't know what form to get and my school didn't either so they gave me the tax break without the form. A couple of other people have said the same thing.
Try pretending you don't know about the 8802.
Search isn't working for me, but if it's working for you then you can look at the other threads on this issue. |
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pdxsteve
Joined: 29 Sep 2004
Location: Bundang
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| Posted: Sat Aug 11, 2007 6:05 am Post subject: Re: Residence Certificate for US |
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| dogshed wrote: |
| pdxsteve wrote: |
| loscatalanes wrote: |
As an EPIK applicant, I read: Residence Certificate" issued by a competent authority of employee's resident country
is necessary to be exempt from paing Korean tax.
My question is where do I get this in the US? I have never heard of it. Many thanks |
You can get one from the IRS by filing a form 8802, Application for United States Residency Certification.
http://www.irs.gov/newsroom/article/0,,id=123818,00.html |
The problem is there's a fee and it takes weeks to process. I didn't know what form to get and my school didn't either so they gave me the tax break without the form. A couple of other people have said the same thing.
Try pretending you don't know about the 8802.
Search isn't working for me, but if it's working for you then you can look at the other threads on this issue. |
Another thing to consider is that, by getting the Residency Certificate and avoiding Korean income tax for two years, you will lose the $82,500 foreign-income exemption from the IRS. In other words, you can't have both the Korean income tax exemption and the US exemption together; ou have to choose one or the other. By filing the 8802 and giving the IRS your Social Security number, you'll be flagged in the system for no US tax exemption. |
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sigmund
Joined: 11 May 2007
Location: Seoul
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| Posted: Sun Sep 16, 2007 10:43 pm Post subject: |
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So I have read the IRS instructions for 8802 and I still can't understand if I have to pay full U.S. taxes on my Korean earned income. If that is the case why would anyone fill out 8802?
My school has just asked me for an 8802 form not a "Residence Certificate". I don't get it. If I fill out the form and give it to them but don't mail one to the IRS with the $35 processing fee, does that mean that the IRS won't know about a tax exemption and I can still get the U.S. exemption for up to 82,000?
Anyone ever actually not pay taxes for your first two years in Korea and then not have to back pay taxes to the IRS latter? |
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dogshed
Joined: 28 Apr 2006
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| Posted: Sun Sep 16, 2007 11:58 pm Post subject: |
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| sigmund wrote: |
So I have read the IRS instructions for 8802 and I still can't understand if I have to pay full U.S. taxes on my Korean earned income. If that is the case why would anyone fill out 8802?
My school has just asked me for an 8802 form not a "Residence Certificate". I don't get it. If I fill out the form and give it to them but don't mail one to the IRS with the $35 processing fee, does that mean that the IRS won't know about a tax exemption and I can still get the U.S. exemption for up to 82,000?
Anyone ever actually not pay taxes for your first two years in Korea and then not have to back pay taxes to the IRS latter? |
The way it's supposed to work is you fill out the 8802 and pay the $35 fee then the IRS sends you the certificate that the school then uses to make you exempt.
The truth is most schools don't know how it works so you can probably get away with giving them the 8802. I told them I ordered a transcript. Transcripts from the IRS are free. I got the transcript but by then they had forgotten the whole thing and I didn't bring it up.
You get both the Korean and the US tax break at the same time. Also if you pay Korean taxes any tax not subject to a refund can be claimed as a credit on your US taxes. |
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dogshed
Joined: 28 Apr 2006
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| Posted: Mon Sep 17, 2007 3:49 am Post subject: |
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| dogshed wrote: |
| Also if you pay Korean taxes any tax not subject to a refund can be claimed as a credit on your US taxes. |
I was wrong about getting the credit for taxes paid. Below is the correct answer.
"You may not take either a credit or a deduction for taxes paid or accrued on income you exclude under the foreign earned income exclusion or the foreign housing exclusion. There is no double taxation in this situation because the income is not subject to United States tax." |
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m10z10n
Joined: 08 Oct 2007
Location: Orlando, FL
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| Posted: Tue Feb 05, 2008 9:28 am Post subject: Cert. of Res. |
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| Has anyone recently applied for a certificate of residency in the US? Is it required? Can I be exempt without it? Cheers |
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22tea77
Joined: 22 Oct 2007
Location: United States
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| Posted: Tue Feb 05, 2008 12:43 pm Post subject: Re: Residence Certificate for US |
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[quote="pdxsteve"][quote="dogshed"][quote="pdxsteve"]
| loscatalanes wrote: |
Another thing to consider is that, by getting the Residency Certificate and avoiding Korean income tax for two years, you will lose the $82,500 foreign-income exemption from the IRS. In other words, you can't have both the Korean income tax exemption and the US exemption together; ou have to choose one or the other. By filing the 8802 and giving the IRS your Social Security number, you'll be flagged in the system for no US tax exemption. |
Wow! The confusion continues.
I'm not going to bet the farm on this one, but from all that I have read, there are TWO WAYS to qualify for the foreign earned income exclusion.
One way is to show you had a Residence in another country, and you are correct, in applying for the residency certificate you are stating clearly you are a US Resident and not a Korean resident...
HOWEVER....
The second way is to be out of the US and actually on some foreign soil for at least 330 days out of a 365 day period. In doing so, you have passed the "Physical Presence Test" and qualify in this manner for the exclusion.
I have been unable to find ANY info that suggests that whether or not you pay taxes in Korea comes into play for this second qualification
I AM NOT AN ACCOUNTANT! I AM NOT A US TAX EXPERT! I am just a future EPIK Employeee who has been unable to get a definate answer from anyone (including the IRS) and has done as much reading and research on this as possible.
I welcome any other info on this that anyone might have. Thanks |
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Ut videam
Joined: 07 Dec 2007
Location: Pocheon-si, Gyeonggi-do
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| Posted: Tue Feb 05, 2008 1:45 pm Post subject: Re: Residence Certificate for US |
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| pdxsteve wrote: |
| Another thing to consider is that, by getting the Residency Certificate and avoiding Korean income tax for two years, you will lose the $82,500 foreign-income exemption from the IRS. In other words, you can't have both the Korean income tax exemption and the US exemption together; ou have to choose one or the other. By filing the 8802 and giving the IRS your Social Security number, you'll be flagged in the system for no US tax exemption. |
Not so. 22tea77 is correct: you can still claim the foreign earned income exemption from the U.S., you just have to do so by meeting the physical presence test rather than the bona fide residence test. And that's only for the first year. You only have to be a resident of the U.S. at the beginning of your time in Korea:
| Quote: |
| Since a temporary visit may be of such a duration that an individual may lose his status as a resident of the Contracting State of which he was a resident at the time he became eligible for the benefits of this Article, the individual need only be a resident of such Contracting State at the beginning of his visit. However, if the individual becomes a citizen of, or acquires immigrant status in, the other Contracting State, that other Contracting State may tax the individual without regard to this Article. See paragraphs (4) and (5)(b) of Article 4 (General Rules of Taxation). If the individual's visit exceeds a period of two years from the date of his arrival, the exemption applies only to the income received by the individual before the expiration of such two year period. |
Source: Technical Explanation of the Convention between the United States of America and the Republic of Korea for the Avoidance of Double Taxation, etc., Article 20, "Teachers" (available from the IRS website: http://www.irs.gov/businesses/international/article/0,,id=169602,00.html)
Thus, if you're starting at EPIK/GEPIK/SMOE in March 2008 (or a university for that matter, as the treaty provision applies to university teachers as well), you file a 8802 and get a 6166 certificate for 2008. You don't have to provide one for your second year (2009), as the treaty says you only have to be resident in the U.S. at the beginning of your stint in Korea. |
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