Korean Job Discussion Forums

pcs0325 · Joined: 21 Sep 2007

This is my first year working in Korea. From what I gather, my employer will file my Korean taxes. And I got from Google that any earnings under $75,000 are tax exempt for US citizens ( http://www.asia-pacific-connections.com/frequently_asked_questions.html ).

Even if I don't have to pay taxes, do I still have to file a tax return for California?

dharma bum · Joined: 15 Jun 2004

Some people will tell you that you'll be fine not filing, but from what I understand, you're required to file even if you don't owe anything. Sorry I don't have a link or more details...but I do remember reading it on some kind of official website, so it should be good information.

bassexpander · Joined: 13 Sep 2007 Location: Someplace you'd rather be.

My father handles my taxes back home, and according to him, I am still required to file (Iowa) both state and federal. There used to be a radio ad running for H&R Block Korea about this. They said that if you haven't been caught, you are fine and can file your back years late. But if you are ever caught having not filed, you are in big trouble.

So file every year, even if you make nothing in the US.

Tobias · Joined: 02 Jun 2008

1. You are required to file unless you make less than the minimum gross income amount. It's around 8200 US dollars this year. This seems straight forward until you remember the dollar changes in value relative to your host country's currency. Sometimes there's quite a swing over the course of a year. I use the average when I file, and I always file when I must.

2. In order to qualify for the exemption, you must remain outside the US for a minimum of 330 days in a tax year. If you violate the exemption, you must, of course, pay taxes on what you make overseas. I know this is true. I often wonder how many dodge taxes after going over the 35-day limit.

3. If you make more than the minimum amount and don't file, you lose the exemption and must pay taxes no matter how long you stay gone in any tax year. This is based on what someone told me in Thailand, a person who may or may not have known what he was talking about. Check into it just to be sure.

CentralCali · Joined: 17 May 2007

If you're concerned about California tax issues, you can start with the Franchise Tax Board. That's California's version of the IRS.

pcs0325 · Joined: 21 Sep 2007

All right, it looks like I'll be filing. Thanks for all the input.

Tobias · Joined: 02 Jun 2008

One final word. My first post was about you and Uncle Sam. This post is about you and Uncle Arnold. Be sure to file state tax forms if you live in Cally. California is well known for being an anal, almost Nazi, state when it comes to the law and taxes. Of course, if you live there you know this already.

Snowkr · Joined: 03 Jun 2005

I second what Tobias said above...
Do everything exactly by the book for California. Better safe than sorry.
H&R Block in Seoul are really good and very helpful in answering questions too in my experience...

CentralCali · Joined: 17 May 2007

Drew345 · Joined: 24 May 2005

The federal taxes give a deduction up to ($80,000 ? ) for income earned outside the country.

Unfortunately most states do not give this overseas income deduction. There is a good chance California is going to tax you full rate on your Korea income.

A lot of tax software offer free filing for people under a certain income. I think Turbotax is free filing for people under 20k income. There are 2 schools of thought about doing taxes self with Turbotax or using H+R block.
Some people say taxes are so important that they don't want to look at it and prefer to give all papers to H+R.
I prefer to say that taxes are so important that anybody should learn how to do it right themselves.