Korean Job Discussion Forums

spliff · Joined: 19 Jan 2004 Location: Khon Kaen, Thailand

I'll be going on my 3rd year at same PS so now have to pay taxes. What paperwork does the school require for this? My co-teacher just handed me a "Application for United States Residency Certification" (form 8802) is this the correct document?

Yu_Bum_suk · Joined: 25 Dec 2004

Pay unto Caesar what is Caesar's.

esetters21 · Joined: 30 Apr 2006 Location: Seoul

Iron9er · Joined: 01 Jun 2008

Really? Do you mean you have to pay US taxes while getting paid in Korea?

spliff · Joined: 19 Jan 2004 Location: Khon Kaen, Thailand

In my contract it says that I am exempt for the first TWO years.

esetters21 · Joined: 30 Apr 2006 Location: Seoul

Rob'sdad · Joined: 12 May 2008 Location: Seoul

IRS Guidelines require you to file a 1040 and a 2555. Nothing else is required. You should have filed them even if you didn't pay Korean taxes.

If you teach privates, over estimate your salary. When you return home the IRS will be curious about why you moved more cabbage than you reported. Homeland Security and the DEA might also be paying attention to that.

On IRS form 2555 there is a residency test. If you were absent from the US during the calendar year, you are exempt from federal/state income taxes.

www.irs.gov

Zenas · Joined: 17 May 2008

PRagic · Joined: 24 Feb 2006

You should have been filing your US tax forms every year.

By the two-year tax exemption, your school meant that you didn't have to pay taxes in Korea for your first two years. This system was set up to entice more people to come over and enjoy the milk and honey opportunities.

spliff · Joined: 19 Jan 2004 Location: Khon Kaen, Thailand

OK, right...I edited the title. I meant K-Taxes. So do I need to do this residency form or not?

Tobias · Joined: 02 Jun 2008

I'll add this unrelated tax info for US citizens, as it's tough to get anyone to pipe up about this issue on websites such as this one. What is more, it seems some believe that defying the IRS is acceptable practice:

There is a minimum income level for filing the 1040. If you are below this amount, you needn't file. You CAN if you choose to, though. However, those having incomes above this amount must file, no matter if they earned the income in the US or not. I believe in 2006, the last time I checked, the minimum amount for filing was around 8,000 dollars. When I filed earlier this year, I had to include both the 2555 and the 1040. I had to send those to the IRS processing center in Austin as well. I was exempt from paying any tax, as my total income was less than the max (around 80,000). To muddy the water a bit, the value of the dollar vascilated back and forth during my contract period. Getting a bead on my total income came down to taking the average over the year.

And just this week I received my 300-dollar stimulus check. Doing the right thing pays, at least sometimes. I know people in TESOL who haven't filed taxes in 25+ years. That is their choice, but someday the IRS may come calling.

I do believe it's a misdemeanor if you don't file a return when you're supposed to. If you make more than the minimum, you must file a return no matter where you work. People claim that you don't have to file, as this would violate some freedom we have reserved somewhere. But tangle with the IRS and you will be introduced to reality. If everybody could ignore filing, the system would collapse. Obviously the IRS has made some good examples of those who chose to break the rules, as very, very few take the risk and not file a return.

Always file when you must. Defying the IRS is a route you don't want to take. Just bow down and kiss their feet when they want you to. It's only once a year anyway.

gangpae · Joined: 03 Sep 2007 Location: Busan

Tobias · Joined: 02 Jun 2008

Agreed, Pae.

Hmmm. Some stranger is going to come on Dave's site and tell us how we all can avoid paying taxes. HE will lead the charge.

As if he were the very first one who thought about doing this. People long ago would have thought about this and would have been doing it all this time if really were possible. But guess what? They don't do it. Why is this? You figure it out.

You can give the IRS the middle finger salute, but know they will nail you to the cross if they discover your disobedience.

When it comes to the IRS, obey, obey, obey.

valkerie · Joined: 02 Mar 2007 Location: Busan

Maybe there is a 2 year cut off for everybody....but I got all my tax back at the end fo the tax year, as did all my colleagues. I am told if I leave before the end of next tax year I can apply for the refund at the local tax office. (As have friends who have left).

Tobias · Joined: 02 Jun 2008

Val, did you have to provide a cert of residency when you first signed on at this employer? My college is suddenly requiring that of me, and I'm 1/3 the way through my second year. My employer is completely in the dark about the laws and E-2s. My HR dept. is now deducting taxes from my salary, and it's telling me I have to provide a proof of residency before the deductions are stopped. If I can get them to stop doing this immediately, I'd appreciate if someone in the know would tell me so. I'd take yet another trip to my local tax office and do whatever it takes to lead my bosses out of the darkness and into the light.

I used to dislike the lawsuit culture. Not anymore. In lawsuit cultures like America, people (for the most part) know their shit if they are expected to.