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Which tax form do I need to be expempt from paying US taxes?
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bocaloca



Joined: 02 Dec 2008
Location: Kimpo, Korea
PostPosted: Sat Dec 06, 2008 5:00 am    Post subject: Which tax form do I need to be expempt from paying US taxes? Reply with quote
Hi,

I know that you can claim up to 85,000 in foreign income without paying taxes, but does anyone know which form I send to the IRS?

Thanks!
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waseige1



Joined: 09 Oct 2008
PostPosted: Sat Dec 06, 2008 10:44 am    Post subject: 6166 and 8802 Reply with quote
I just researched this and did my forms. I am coming to Korea in Februrary.

You need IRS form 6166 and you get it by fillling out form 8802. The form is pretty criptic and I pray I did it right. You have to send $35 to get the form 6166.
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call_the_shots



Joined: 10 Oct 2008
PostPosted: Sat Dec 06, 2008 2:50 pm    Post subject: Reply with quote
In addition to the standard form 1040, you'll need to fill out form 2555 to take the foreign earned income exclusion. You can download both forms here:

http://www.irs.gov/formspubs/lists/0,,id=97817,00.html
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call_the_shots



Joined: 10 Oct 2008
PostPosted: Sat Dec 06, 2008 2:57 pm    Post subject: Re: 6166 and 8802 Reply with quote
waseige1 wrote:


You need IRS form 6166 and you get it by fillling out form 8802.


The 8802 form is a little different. That's the form you use to get the Korean income tax exemption (for those who are working at public schools). For the US income tax exemption (the $85,000 exemption), form 8802 is not necessary.
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sarbonn



Joined: 14 Oct 2008
Location: Michigan
PostPosted: Sat Dec 06, 2008 7:55 pm    Post subject: Re: 6166 and 8802 Reply with quote
waseige1 wrote:
I just researched this and did my forms. I am coming to Korea in Februrary.

You need IRS form 6166 and you get it by fillling out form 8802. The form is pretty criptic and I pray I did it right. You have to send $35 to get the form 6166.


You have to send $35 to get a form?
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jadarite



Joined: 01 Sep 2007
Location: Andong, Yeongyang, Seoul, now Pyeongtaek
PostPosted: Sat Dec 06, 2008 8:19 pm    Post subject: Reply with quote
You have to send 35 as a "user fee", whatever that means.

http://www.irs.gov/instructions/i8802/ch01.html#d0e255
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Coodge7



Joined: 02 Dec 2008
Location: Tongyeong-si, Gyeongsamnam-do
PostPosted: Sun Dec 07, 2008 2:38 pm    Post subject: Reply with quote
People should be aware that if you have not been out of the US for a full 330 days of a full Tax Year (J1 to D31) you are not qualified. That means if you began working for your school or wherever, in September, you can't file the 2555.
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demel



Joined: 14 Oct 2008
PostPosted: Sun Dec 07, 2008 6:13 pm    Post subject: Reply with quote
<< So does that mean that if I started here in September, I have to pay US tax on the September-December (calendar year 2008) Korean income?
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Tobias



Joined: 02 Jun 2008
PostPosted: Sun Dec 07, 2008 8:05 pm    Post subject: Not true Reply with quote
Coodge7 wrote:
People should be aware that if you have not been out of the US for a full 330 days of a full Tax Year (J1 to D31) you are not qualified. That means if you began working for your school or wherever, in September, you can't file the 2555.


Not true.

I came part-way through a US tax year, filed the forms 1040 and 2555, and qualified for the exemption last year. I even called the IRS help line twice and got the same answer both times before I filed, just to make sure. One does not want to tangle with the IRS, after all. According to the help guys, I was fine filing those forms. I even got the economic stimulus check about 2 months later, so I know I did it right.

You MUST file the two tax forms, and you MUST remain outside the US for the 330 days to qualify. That's it. Know that I filed my taxes in March of last year, after I had been here 330+ days. Know also that I came here AFTER February 1, so I had already blown the 330 days in a tax-year thing.

Last edited by Tobias on Sun Dec 07, 2008 8:30 pm; edited 2 times in total
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Tobias



Joined: 02 Jun 2008
PostPosted: Sun Dec 07, 2008 8:10 pm    Post subject: True and false Reply with quote
waseige1 wrote:
I just researched this and did my forms. I am coming to Korea in Februrary.

You need IRS form 6166 and you get it by fillling out form 8802. The form is pretty criptic and I pray I did it right. You have to send $35 to get the form 6166.


I'll add:

Yes, getting the "proof of residency" is something everyone should do before coming to Korea. If you don't do it, your school may take taxes out of your salary, even though you may be in your first two years here. If you want your school to not deduct taxes, to stop the deductions if they are already taking taxes out, or if you want to get a refund on taxes they've already withheld, some places require you offer 'proof' you're a US resident. This is ridiculous, as you are able to get the fucking job BECAUSE you're a US resident. But that escapes them in the land of sparkles.

Enter the 8802 and 6166

You'll need to get the 6166 form by filling out and submitting another form, the form 8802 people are talking about here. This 8802 costs 35 bucks to process, and I'm sending mine off this week so I can get my refund on taxes my school has withheld (even though I AM exempt). If I don't get that form to them, I'll be shit out of luck.

For those of you who are here working for a public school and are still in your first two years, count yourselves lucky if you aren't having taxes withheld. Some of us have to jump through hoops to get our money back or get the deductions to stop.