Korean Job Discussion Forums

[Tobias]

If you're from the USA and are coming to Korea to work for the first time, you'd be wise to become aware of certain tax codes and forms. You'll be working in Korea, meaning you'll have a certain tax responsibility here. You'll also be making more than the minimum amount required to file with the IRS if you stay here for any appreciable amount of time. Naturally, there will be tax paperwork to submit to both governments in these cases.

You'd be smart to read up on the following:

The USA-Korea tax treaty. Workers here from the USA are exempt from paying taxes to Korea their first two years.

IRS forms 8802 & 6166. These forms are used to get a refund from the Korean government if you have taxes taken out of your salary here in your first two years.

IRS forms 2555 and 4868. These forms are used to declare income earned overseas and to apply for time extensions on filing.

[bodybydada]

I will have to double check this, but I thought the threshold for paying US income taxes on income earned while living (residing) abroad was much higher--in the neighborhood of 80,000-100,000 (including amenities like housing and school stipends for children). Has there been a recent change to that?

[bodybydada]

the threshold is 87,500, but you first have to pass the bonafide residnece test (12 consecutive months, usually for the tax year in question) or physical presence test (330 days in a calendar year spent in foreign country or countries).

You will need the 2555 EZ form for this exemption.

Your post was a little misleading. Yes, one must file, but no, one is not obligated to pay taxes in the US. (i know of no teachers here making over 87,500--although they certainly exist)

[bogey666]

[Straphanger]

[tired of LA]

[Tobias]

[Tobias]

[rac118]

[Tobias]

Sure do. Waiting on my plane ride out of here. You can have the 1500+ -to-1 babysitting gigs.

[rac118]

[I-am-me]

I have been in korea 5 years an never did a tax form. What for? I have my 40 quarters required for social security. For all the IRS knows, I have been living under a bridge. Dont be scared of the IRS...you dont make enough!

[bogey666]

I see. Ergo if I started in May 2008.. and file in Apr 2009, I should be able to pass the so called foreign residence test.

p.s. umm... no... my earnings were in toilet paper won.. my withholdings were in toilet paper won - but you expect me to pay any taxes in USD?
No... I don't think so.

[rac118]

[rac118]

let me be clear that in every post im done with sarcasm