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lov2travel
Joined: 21 Oct 2008
Location: South Korea
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 Posted: Mon Feb 09, 2009 9:39 pm Post subject: US Taxes: How to file, what to file while working in korea |
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This is my first time working in Korea.
I will not have to file international taxes THIS time, but I will next year.
How do I file taxes (just from the states) from inside Korea?
Now that I'm working in Korea, how do taxes apply? Are we taxed much? Will I owe the IRS a HUGE lump sum next year because I haven't been paying each month to social security, Medicare, etc?
Where do I find out this information?
Thanks |
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Jeff's Cigarettes
Joined: 27 Mar 2007
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| Posted: Mon Feb 09, 2009 10:59 pm Post subject: |
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Tobias
Joined: 02 Jun 2008
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| Posted: Tue Feb 10, 2009 12:17 am Post subject: Re: US Taxes: How to file, what to file while working in kor |
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| lov2travel wrote: |
This is my first time working in Korea.
I will not have to file international taxes THIS time, but I will next year.
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Never heard of it. You'll file with Uncle Sam, just like always.
| lov2travel wrote: |
How do I file taxes (just from the states) from inside Korea?
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You're exempt from paying taxes on what you make here up to about 80,000 or so. But this assumes you pass the 'presence test' on another IRS form you'll have to fill out. To pass the presence test, you have to remain out of the USA for 335 days in a 365-day stretch to qualify for the exemption.
What you'll do when filing time comes:
1. Download IRS 2555 and fill it out. This is where you'll complete the presence test to determine if you qualify for the exemption. If you pass, you're exempt. If you fail, you'll have to pay taxes on what you make here, as you will not have been gone from the US long enough.
2. Download IRS 1040 and fill it out. As far as how much you list as earnings goes, I just do an average for the exchange rate. This will be important this year. Hopefully, it will be next year, too, as the won will actually (again, hopefully) APPRECIATE.
3. Put both forms in an envelope and send the pack to the correct address for those working overseas. Last year, that was the Austin branch.
It'll take about two months for any stimulus checks to arrive, if taxpayers are due to get those next year.
As far as SS and medicare go, you probably have to set up separate accounts and pay into those. Don't know for sure. |
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lov2travel
Joined: 21 Oct 2008
Location: South Korea
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| Posted: Tue Feb 10, 2009 6:51 am Post subject: Re: US Taxes: How to file, what to file while working in kor |
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[quote="Tobias"]
| lov2travel wrote: |
This is my first time working in Korea.
I will not have to file international taxes THIS time, but I will next year.
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Never heard of it. You'll file with Uncle Sam, just like always.
| lov2travel wrote: |
How do I file taxes (just from the states) from inside Korea?
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Thanks for the great info. That will really help. WHat I meant by international taxes is..well...filing taxes while overseas..the international earned income? something like that.
I don't know the terms.
Whenever I have filed before..I've just used H & R Block with my family..and sometimes just the 1040EZ. Now I think it'll be different..I never mailed..always did it electronically.
Thanks again |
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Tobias
Joined: 02 Jun 2008
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| Posted: Tue Feb 10, 2009 5:58 pm Post subject: What is up with tax filers? |
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I hear 'H & R Block' named here a lot, usually in the same paragraph as '1040 EZ'. Take it from a guy who's been filing tax returns since he was 16. YOU CAN DO IT. Quit making the Block boys rich. Like the form says--it's EZ to fill out your own forms. It takes me about 30 minutes to do it.
My colleague told me last week it cost her like 200 bucks to have her taxes done for 2007, and she filed the 1040EZ with no special deductions. She's repeating that process this year.
Jesus. Maybe I should start preparing taxes instead of doing this TESOL foolishness. There's definitely money to be made in it. |
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bluelake
Joined: 01 Dec 2005
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| Posted: Tue Feb 10, 2009 6:17 pm Post subject: |
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As mentioned, you need to fill out the 1040 and 2555 forms, which (also as mentioned) are not difficult to do. I've been doing my forms out for the past two decades here and it's just a yearly routine now.
As for H&R Block, I tried to use their service last year (just to see), and I ran into a roadblock, as they wanted my Korean university's EIN (Employer Identification Number), which, as a non-US company, they don't have. I gave up on it and just did it the old-fashioned way: Pentium computer and laser jet printer  |
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PRagic
Joined: 24 Feb 2006
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| Posted: Tue Feb 10, 2009 6:24 pm Post subject: |
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| Isn't there already a sticky about this? |
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