Korean Job Discussion Forums

[moldenke]

I taught at a hagwon from September '07 till September '08. I'm back in the states, and still clueless about what I should do for an IRS tax return.

I didn't file last year, and I probably don't HAVE to, but I've heard I could potentially get a refund. . .

I imagine it wouldn't be very complicated, but none of the information/advice I've found is specific enough for my case (individual, typical hagwon contract).

[bassexpander]

Yes, you DID have to file. Even though you made less than 80 thou here, you should have filed. It's the law. Get caught and you'll get penalized for it! Complete the filing before you are caught, and you'll be OK, even though late (so I've heard).

Hurry, hurry!

[Tobias]

I think you're exempt for what you earned overseas in 2008. If you were outside the US for 330 days out of 365 consecutive days, you pass the presence test for 2008 and can claim the exemption. The beginning day of the stretch can, of course, be in 2007.

It's 2007 you may have to pay taxes on. If you were in the USA more than 35 days in 2007, you'll have to pay taxes on everything you earned in 2007.....Even that which you earned overseas in 2007.

It sucks, but apparently the best time to come to one of these overseas teaching gigs is January 1 through June 15. After June 15, you run up against the two-month extension deadline.

To clarify, assume you start a contract on June 1. You then work June-December and are done for that US tax year. You don't leave Korea during your contract, and you file your tax return on June 2 of the next year, the day after your contract expires. You qualify for the exemption because you pass the presence test. You spent 330/365 days overseas.

If you begin your contract on July 1, you'll work July-December and be done with the tax year. The absolute deadline for filing a return for that year is June 15 of the next year, meaning you will fail the presence test. 365 days will have not elapsed since you started. You will have to pay taxes on the July-December amount. This, of course, assumes you respect the deadline of June 15.

[cedarseoul]

[berrieh]

When you FILE has nothing to do with when you're eligible. The extensions are for filing time (to get the paperwork done and in order) after the eligibility period has already elapsed. The taxation period is set in stone - it is from Jan 1-Dec 31 every single year.

Filing time varies (April 15, June 15, October 15, whatever) but you are always filing for the same year. So, this year people are filing taxes for Jan 1, 2008-December 31, 2008. If they were in the country less than 35 days in THAT time, then they don't need to file.

Edited: Okay, so I looked it up. You need to file, but anything under the $87,000ish mark is not counted towards tax liability. But you'd still have to file because presumably you worked in the U.S. during the time you were there. So long as you were out of country for a full year, your income abroad does not count against you - but you still need to file.

From a website distilled in better language:

http://www.taxmeless.com/page4.html

[cedarseoul]

[Tobias]