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hochhasd
Joined: 05 Jul 2008
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 Posted: Fri Jul 11, 2008 12:43 pm Post subject: I want to make sure my tax information is correct |
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I know this has been brought up before, but I will ask one more time.
If I work for the public schools in Korea and they do not take taxes out because I am an American. Do I have federal and social security taxes taken by the IRS? Do I have to 1099? The IRS can not give me a straight answer. Big surprise!
Help 
Last edited by hochhasd on Fri Jul 11, 2008 12:53 pm; edited 1 time in total |
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ttompatz
Joined: 05 Sep 2005
Location: Kwangju, South Korea
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| Posted: Fri Jul 11, 2008 12:53 pm Post subject: Re: I to make sure my tax information is correct |
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| hochhasd wrote: |
I know this has been brought up before, but I will ask one more time.
If I work for the public schools in Korea and they do not take taxes out because I am an American. Do I have federal and social security taxes taken by the IRS? Do I have to 1099? The IRS can not give me a straight answer. Big surprise!
Help |
There is no reporting of income between Korea and the USA.
If you don't tell the IRS that you are working, they can't know and have no way to check. For all they know or can prove, you are just on an extended holiday in Asia, bumming on the beach.
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hochhasd
Joined: 05 Jul 2008
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| Posted: Fri Jul 11, 2008 12:57 pm Post subject: What about ss tax |
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| I understand that the Social Security administration has an agreement with Korea concerning ss tax. What about filling every year? |
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MissSeoul
Joined: 25 Oct 2006
Location: Somewhere in America
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| Posted: Fri Jul 11, 2008 1:00 pm Post subject: |
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| There are H & R Block in Itawon ( near Army Base ), why don't you ask them ?? |
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ttompatz
Joined: 05 Sep 2005
Location: Kwangju, South Korea
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| Posted: Fri Jul 11, 2008 1:04 pm Post subject: Re: What about ss tax |
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| hochhasd wrote: |
| I understand that the Social Security administration has an agreement with Korea concerning ss tax. What about filling every year? |
READ MY LIPS...
There is NO income reporting between the two countries.
Hell, for most hakwon workers there isn't any income tax or pension reporting within Korea. More often than not the funds aren't even paid to the K'gov't. (the hakwon owner pockets it all) and doesn't even register you.
The agreement covers double taxation and the ability to get a refund of national pension / ss for NON nationals when they leave the country.
Go to the NPS website and read the specific treaty if you want to.
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hochhasd
Joined: 05 Jul 2008
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| Posted: Fri Jul 11, 2008 1:06 pm Post subject: I do not live in Korea now |
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| It is pretty hard to ask H&R Block in Korea being I am living in the US now. Has anyone out there experienced the same thing that may happen to me? I am not looking to get in trouble with the IRS. |
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hochhasd
Joined: 05 Jul 2008
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| Posted: Fri Jul 11, 2008 1:09 pm Post subject: I can read your lips |
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| Please educate me! hakwon, is that the public schools in Korea? |
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MissSeoul
Joined: 25 Oct 2006
Location: Somewhere in America
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| Posted: Fri Jul 11, 2008 1:11 pm Post subject: Re: I do not live in Korea now |
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| hochhasd wrote: |
| It is pretty hard to ask H&R Block in Korea being I am living in the US now. Has anyone out there experienced the same thing that may happen to me? I am not looking to get in trouble with the IRS. |
For all American citizen, If anyone make less than $ 75,000 a year in oversea, you don't have to pay ANY TAXES at all. |
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MissSeoul
Joined: 25 Oct 2006
Location: Somewhere in America
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| Posted: Fri Jul 11, 2008 1:14 pm Post subject: Re: I can read your lips |
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| hochhasd wrote: |
| Please educate me! hakwon, is that the public schools in Korea? |
No, hakwons are private language schools.
It's not about education, it's about making $$$$.
You better look jobs at public schools , not hakwons. |
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spliff
Joined: 19 Jan 2004
Location: Khon Kaen, Thailand
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| Posted: Fri Jul 11, 2008 2:34 pm Post subject: |
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| I was asked by my PS to do a 8802 this year....Application for United States Residency Certification. |
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Fresh Prince
Joined: 05 Dec 2006
Location: The glorious nation of Korea
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hochhasd
Joined: 05 Jul 2008
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| Posted: Fri Jul 11, 2008 8:19 pm Post subject: You mentioned a form that your public school made you fill |
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You mentioned a form the public school made you fill out. I spoke with social security and they claim I need a " certificate of coverage" filled out by the school or govt. The problem still remains if I am not having taxes taken ( federal or ss) out by the Korean Government and I file every year I am over in Korea, the honest question still remains if United States requires me to claim Federal and Social Security tax and how much? The answer of the countries not communicating may be the case, but the US could definitely figure out by my passport what I have been doing for the past one to two years in Korea. IF worked the public school like you claimed maybe you have some suggestions?  |
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MrRogers
Joined: 29 Jun 2008
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| Posted: Fri Jul 11, 2008 9:02 pm Post subject: |
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ttompatz wrote:
| Quote: |
READ MY LIPS...
There is NO income reporting between the two countries. |
Yes...I can't even get the Korean education office to get-it-together to give me a simple salary statement/receipt ... so them getting any reporting to the U.S., even if they did do it...would be outrageous...  |
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Fresh Prince
Joined: 05 Dec 2006
Location: The glorious nation of Korea
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| Posted: Fri Jul 11, 2008 9:28 pm Post subject: Re: You mentioned a form that your public school made you fi |
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| hochhasd wrote: |
| You mentioned a form the public school made you fill out. I spoke with social security and they claim I need a " certificate of coverage" filled out by the school or govt. The problem still remains if I am not having taxes taken ( federal or ss) out by the Korean Government and I file every year I am over in Korea, the honest question still remains if United States requires me to claim Federal and Social Security tax and how much? The answer of the countries not communicating may be the case, but the US could definitely figure out by my passport what I have been doing for the past one to two years in Korea. IF worked the public school like you claimed maybe you have some suggestions? |
| Quote: |
Binational Social Security (Totalization) Agreements
The United States has entered into agreements with several foreign countries to coordinate social security coverage and taxation of workers who are employed in those countries. These agreements are commonly referred to as totalization agreements and are in effect with the following countries.
Australia Greece Republic of
Austria Ireland Korea (South
Belgium Italy Korea)
Canada Japan Spain
Chile Luxembourg Sweden
Finland Netherlands Switzerland
France Norway United
Germany Portugal Kingdom
Under these agreements, dual coverage and dual contributions (taxes) for the same work are eliminated. The agreements generally make sure that you pay social security taxes to only one country.
Generally, under these agreements, you will only be subject to social security taxes in the country where you are working. ... |
http://www.irs.gov/publications/p54/ch02.html#d0e1855
I was intrigued by your question so I did some quick checking and ss does require you show them documentation but if you qualify for the foreign income exclusion with the IRS would the IRS not consider you qualified for the ss exclusion?
Why do you think not having Korean taxes deducted from your pay will cause you to be liable for U.S. income taxes? I've never heard that before. |
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LOVYDOVY
Joined: 18 Jul 2007
Location: USA
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| Posted: Fri Jul 11, 2008 11:26 pm Post subject: |
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Residency Certificate:
If you file form 8802, you will have to let the Dept. of Treasury know you will be working in what country. You are allowed only 2 years of exemption from paying Korean tax if you work in public school. But you have to pay IRS. You can't have both ways. As ttompatz have mentioned, maybe the 2 countries do not communicate. A friendly advice: never mess with IRS.
If you do pay Korean tax, file form 2555 or 2555-EZ. So you can be excluded from paying IRS. Few conditions do apply. You have to be physically present 330 days (full days) out of 365 days in foreign country. Send the form to IRS after you have entered Korea 330 days. The maximum exclusion is $85,000. Once you choose to exclude your foreign earned income, that choice remains in effect that year and all the years unless you revoke it.
Does anyone know the pros and cons? |
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