Korean Job Discussion Forums

[Derrek]

My father is filing my taxes for me back home. He's using a computer tax program which won't allow my tax information to SEND because it has issues with my current situation.

Yes, the American tax code says that if I stay in Korea for nearly a year (I can't remember the exact days) I don't have to pay taxes on the earned income here for something like the first $70,000 or $80,000. The problem is that I started working in May, so for the calendar year, I haven't actually been in Korea a full year.

Do I have to report the days I worked in 2002 (which are less than one year) and be taxed on those??? Or do I wait until I return to report it all income?

Thanks!

[J.B. Clamence]

As far as I understand, you are exempt from paying taxes on your foreign income for up to $70,000, so you shouldn't have to pay tax on that. Any money you made back in the states before you came to Korea in May is taxable, but only if you made a certain amount. I'm not sure how much, I think it's around $7000. If you make less than that in a year, you don't have to file. So unless you made more than about $7000 during January-April, then you don't have to file. But you have to file for your foreign income exemption (for May-December), but you won't owe anything unless you made more than $70,000.

But you might want to double check that with a tax authority. You really shouldn't take the word of English teachers on this matter. Ask someone who specializes in this kind of thing.

[kangnamdragon]

Actually,

I believe you are only exempt from American tax if you are out of the country 330 days or so. So, you may not be exempt at all and have to be taxed on everything. Call HR Block in Korea. I saw an ad in the Korea Herald. Don't ask us amateurs.

[Ya-ta Boy]

the other two guys are right: don't trust amateurs like English teachers...but they are also right about this-- You will be taxed only on your earnings for Jan. to whenever you came here. It will be very little or nothing.

[keguri]

I called the IRS last week to ask about the rules on paying tax on income earned outside the U.S., especially in South Korea. I had to leave a message so that a specialist could call me back (she called 4 days later). She told me that For the first 2 years, I do not have to pay tax on my foreign-earned income, but she said I would still have to file. She said "You always have to file." What she told me to do is to get the form I would need online (www.irs.gov), and write down the amount I earned, and then under "exemptions" write that same amount (as a negative)... adding up to "zero taxable income." She also said that the U.S. has a deal with Korea and that we are not supposed to pay taxes to them (the Korean gov) for the first 2 years. This makes absolutely no sense to me, however, that neither government would want my tax money. Either I misunderstood what she said, or she was wrong. I don't know. The whole thing is too confusing. The only thing I know of for sure is that you should not have to pay taxes to both the U.S. gov and Korean gov. I agree with the above posters that you should contact a professional or call the IRS and ask them to help you with your specific situation.

[kateinkorea]

I am just in the process of learning all this for the Canadian prespective. It doesn't sound like it is so different in some ways.


The deal as I understand it between Canada and S. Korea is that as long as you are paying taxes in another country you are establishing residency ties there and therefore do not have to be considered a resident in Canada and don't have to pay taxes.



Kate

[Crazy Oz]

Don't come to grief with the Oz tax man, it hurts. They specify 6months minimum out of the country otherwise you pay tax in BOTH countries. Got burned a couple of years ago
As for the US I've heard 330 days bandied around quite a lot...that is continuous days outside the US or its Territories no holidays back home). Check it out really well otherwise ....ouch.
Foreigners are apparently exempt from full taxation in Korea for the first 2 years. This is most probably due to the fact that your own soil will rip the best bits off you.


Still crazy, still here (and renewing).

[morue]

I am currently trying to figure this all out. I spoke with a man at the H&R Block here in Seoul. I came to Korea in April and if I stay here for 330 full days out of any 365 day period, I don't have to pay taxes on income under $80,000. I made a few thousand dollars before I came here but it was minimal and I will be exempt from paying taxes on that money too. Being overseas, we qualify for an extension, file before June 1. SO I would wait until you have been here for a full 330 days and then file and you wont have any worries. Good luck!

[Derrek]

Thanks, you have all been very helpful.

[JaquanQuentinJackson]

Do you have to be in Korea for 330+ days or just outside of America?

[mindmetoo]

[dogshed]

[wylies99]

[ChopChaeJoe]

Don't screw with the tax man. If you haven't been here 11 months, you have to declare everything you earned -- your American and korean earned income. There is a line on the tax form for other earned income for which you don't have w-2 (or is it w-4) for.

[dogshed]