Korean Job Discussion Forums

[jellobean]

I just posted this elsewhere for a friend and thought people might find it helpful....

The basics are pretty simple:

Option A
If you are not in the US more than 30 days in the year --- hooray for you, it's really easy as long as you don't make more than $70,000 per year.... Heck, you can even wait until you eventually return to the US to bother to file (since you don't owe anything, it's not like they can fine you).... Just don't try to register the birth of a child or get a new passport or anything after you haven't filed for a few years (that's how they force you to file when they can't fine you).... If (or when) you actually want to file, read all about the Foreign Earned Income Deduction....

Option B
If you are only in Korea for one year (and go back to the US at any time for more than 34 days) --- sorry for you, you have to pay American tax on your Korean income (minus any Korean tax you can actually prove you paid--which means you actually have to have filed you Korean taxes)... You need to read all about the Foreign Tax Credit....

Option C
If you are in the US more than 30 days in the tax year you come to Korea (ie you started working in Korea in April), but are planning to stay at least 12 months (or not return to the US for 12 months), you might qualify for the physical presence test (courtesy of the IRS) :
How to figure the 12-month period. There are four rules you should know when figuring the 12-month period.
* Your 12-month period can begin with any day of the month. It ends the day before the same calendar day, 12 months later.
* Your 12-month period must be made up of consecutive months. Any 12-month period can be used if the 330 days in a foreign country fall within that period.
* You do not have to begin your 12-month period with your first full day in a foreign country or end it with the day you leave. You can choose the 12-month period that gives you the greatest exclusion.
* In determining whether the 12-month period falls within a longer stay in the foreign country, 12-month periods can overlap one another.

If you qualify for physical presence see Option A
If you don't qualify for physical presence see Option D

Option D
If you are in the US more than 30 days a year, the first two years of filing can be a pain if you don't file the extensions (and you had US income before leaving).... After the end of you first full CALENDAR year working in Korea you are considered (by the US to be) a resident of Korea and can proceed as in Option A... So to avoid the pain in the neck, for your first year-- be diligent and file the "I'm going to eventually be a bona-fide resident" extension form before April 15 and make sure to file those taxes in January after you finish your first full calendar year working in Korea.

[The Hammer]

Jellobean,

Thanks for the info!

Now for the big question...

How many of you have failed to file tax returns since you have been here?
When are you going to do them?

The Hammer

[PGF]

[Bibbitybop]

Even if you are exempt from US taxes, not filing a tax return can majorly f()ck up your credit rating.

I paid a tax agent to do mine. It was worth avoiding the hassle of finding and filling out all the correct documents, even if it cost me $275 US. I'll be finding cheaper agent next year.

[xCustomx]

[jellobean]

Interesting....

I didn't think it could mess with your credit rating unless you actually owed money....

[Bibbitybop]