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fozziejr2
Joined: 05 May 2008
Location: soon to be korea (august 08)
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 Posted: Sun Mar 29, 2009 1:13 am Post subject: Paying US tax after making won? PLEASE HELP |
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Tax season is near, and I just prematurely finished my one year contract at just about 9 months. I taught in Busan from July through December of last year and am back in the US before heading to SK again to start a better job.
I have heard SO MANY different stories about the tax situation. I have heard that during the first 2 years in SK, I shouldn't pay (as a US citizen) any SK or US tax. I have also heard that if you don't stay in Korea for 330 of 365 days during a year, you are not eligible for the US tax exemption. And I have also been told it depends on if you finish your contract.
- In 2008 I taught in Busan for half of the year
- I quit my job in March
- I never had to pay Korean tax while in Korea
Does anybody have any idea? Should I be coughing up some money to the US government on tax day? My mom seems to think so. Any thoughts or previous experiences? Ugh, with as shit as the WON was, I can't imagine having to spend even more of the little money I made.
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katepult
Joined: 19 Oct 2008
Location: the other Gwangju (Gyeonggi-do)
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Teelo
Joined: 09 Oct 2008
Location: Wellington, NZ
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| Posted: Sun Mar 29, 2009 1:59 am Post subject: |
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Whaaa...?
You'd have to pay tax in korea then again in US? |
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tired of LA
Joined: 06 Nov 2006
Location: Seoul
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| Posted: Sun Mar 29, 2009 7:37 am Post subject: Re: Paying US tax after making won? PLEASE HELP |
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| fozziejr2 wrote: |
Tax season is near, and I just prematurely finished my one year contract at just about 9 months. I taught in Busan from July through December of last year and am back in the US before heading to SK again to start a better job.
I have heard SO MANY different stories about the tax situation. I have heard that during the first 2 years in SK, I shouldn't pay (as a US citizen) any SK or US tax. I have also heard that if you don't stay in Korea for 330 of 365 days during a year, you are not eligible for the US tax exemption. And I have also been told it depends on if you finish your contract.
- In 2008 I taught in Busan for half of the year
- I quit my job in March
- I never had to pay Korean tax while in Korea
Does anybody have any idea? Should I be coughing up some money to the US government on tax day? My mom seems to think so. Any thoughts or previous experiences? Ugh, with as shit as the WON was, I can't imagine having to spend even more of the little money I made.
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It depends. If you worked for a public school or university then no you don't have to pay taxes. Thats what the tax exemption is for. If you worked for a hagwon, then yes you have to pay taxes because you didn't qualify for as a bona fide resident or the physical presence test, since you were in Korea for less than a year.
http://www.irs.gov/newsroom/article/0,,id=108276,00.html |
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DaeSung
Joined: 05 Dec 2005
Location: ����
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| Posted: Sun Mar 29, 2009 4:39 pm Post subject: |
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More than likely you do not need to pay taxes.
You do need to file your tax return.
I can't count the number of times I've talked to people that think because they don't need to pay taxes they don't need to file taxes.
Again you must file your taxes.
If you ever plan on getting a U.S. government job, if you plan on bringing a Korean spouse back to the U.S. you will need to have filed taxes. (for the last 3 years in the case of a spouse).
Its easy to correctly file your taxes, do it once and every year after that its pretty much copy and paste. |
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jonbowman88
Joined: 20 Jan 2009
Location: gwangju, s korea
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| Posted: Sun Mar 29, 2009 4:44 pm Post subject: |
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| Yeah you still need to file, and that $87,000 only applies to federal taxes, you are still responsible for state and local taxes as well. This varies depending where you live |
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fozziejr2
Joined: 05 May 2008
Location: soon to be korea (august 08)
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| Posted: Mon Mar 30, 2009 11:23 am Post subject: |
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| Wait, hagkwon workers are not eligible for tax-exemption? Why does that make sense? As long as they meet the 'physical presence test'. What is the difference? |
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rumdiary
Joined: 05 Jun 2006
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| Posted: Mon Mar 30, 2009 1:12 pm Post subject: |
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| fozziejr2 wrote: |
| Wait, hagkwon workers are not eligible for tax-exemption? Why does that make sense? As long as they meet the 'physical presence test'. What is the difference? |
They are eligible.
If you had a job prior to coming to Korea you will probably get money back since you would have earned so little for that year. |
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call_the_shots
Joined: 10 Oct 2008
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| Posted: Mon Mar 30, 2009 3:59 pm Post subject: |
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Hagwon workers are not eligible for the KOREAN tax exemption (i.e.: hagwon workers must pay Korean income taxes).
Everyone (including hagwon workers) is eligible for the U.S. tax exemption (as long as they meet the physical presence test). |
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tired of LA
Joined: 06 Nov 2006
Location: Seoul
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| Posted: Mon Mar 30, 2009 6:27 pm Post subject: |
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| fozziejr2 wrote: |
| Wait, hagkwon workers are not eligible for tax-exemption? Why does that make sense? As long as they meet the 'physical presence test'. What is the difference? |
I was referring to the 2 year tax exemption status where you don't have to pay Korean or US taxes. That is only for people who work at public schools or universities. So if you worked at a public school, you don't have to pay taxes on what you earned even though you weren't in Korea for a full year since it applies to your first two years in Korea. Hagwon workers on the other hand do not qualify for the two year tax exemption. So if you do not meet the physical presence test, then you have to pay taxes on what you earned in Korea. |
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