Korean Job Discussion Forums

[raketbaler]

I know I'm a noob at all this, and I'm sure this has been in another thread, but I couldn't find any. This may be a stupid quesiton, but do you have to pay taxes on what you make In Korea back home?

[dxr]

from http://www.irs.gov/publications/p54/ch04.html#d0e2803 :

You meet the physical presence test if you are physically present in a foreign country or countries 330 full days during a period of 12 consecutive months. The 330 days do not have to be consecutive. Any U.S. citizen or resident alien can use the physical presence test to qualify for the exclusions and the deduction.

[Drew345]

In 2006 the US tax laws changed to include something called "Foreign Income Stacking". In effect, you don't pay taxes on the foreign income (up to 80,000), but because of the foreign income, you have to pay more taxes on any US income that you have.
For example, if you made $30,000 in Korea and $10,000 in the US (on interest and dividends), before 2006 you would pay about $1,500 taxes on that. Now for the same incomes you would pay about $2,500 taxes. The overseas income would technically not be taxed, but it is used to bump or "stack" your US income from a 15% bracket up to a 25% bracket.

[raketbaler]

thanks guys, I won't have any income in the US while over there, so I guess I'll just pay the Korean tax. As long as I can save money over there and bring it back to the US and not get taxed on it, I'm a happy boy.

[moosehead]

[raketbaler]

thanks moosehead.

[moosehead]

[raketbaler]

I appreciate every bit of advice on here. I know I'm a total Noob at this. Just trying to do all my homework before going over there.

[bacasper]

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