Korean Job Discussion Forums

majoba82 · Joined: 07 Apr 2008 Location: USA - Philadelphia

I have another two days or so to complete my taxes in the US. An accountant there has been filing them for me, but keeps insisting I have to pay tax on the money I have earned here. As a US citizen, I was certain my Korean earnings were tax free. Can someone send me a link or point me in the right direction? I want to send her the info so she will stop bothering me. Thanks to anyone/all who help.

ThomasR · Joined: 31 Mar 2009

I dont know the link to the official source but you have to earn something like $80,000 a year in Korea before its taxed in Korea. Sorry I couldnt be more specific.

Ut videam · Joined: 07 Dec 2007 Location: Pocheon-si, Gyeonggi-do

First of all, US citizens residing overseas get an automatic 2-month extension to file their income tax returns. If you're living in Korea now, your 1040 isn't due 'til June 15. Your tax accountant ought to know this.

Second, you are subject to US taxation on money earned overseas. In practice, however, the first $87,000+ (I don't remember the exact figure for TY 2008) of foreign earned income is exempt, meaning that for all intents and purposes your Korean teaching income will be US tax-free.

Nevertheless, you still have to file Form 1040, as well as the supplemental 2555 (or 2555-EZ) to report your foreign earned income and demonstrate your qualification for the foreign earned income exclusion.

sarbonn · Joined: 14 Oct 2008 Location: Michigan

muffintop · Joined: 29 Dec 2008 Location: SK

It said on the IRS site that we get a 2 month extension living outside the USA but that we have to file the form 4868 electronically letting them know we are outside USA and although we get the extension..they have to know why.

I am pretty sure I read it right. I was going to call IRS tonight to verify.

bluelake · Joined: 01 Dec 2005

Morgen · Joined: 02 Jul 2008

Honestly I'm a little surprised this question keeps coming up. A quick search would give you all the info you need in seconds. You also might check with the IRS here: http://www.irs.gov/faqs/content/0,,id=199953,00.html

You have to have been physically outside the US for 330 out of 365 days to qualify for the foreign income exclusion. If you haven't been here for a year yet, which I assume you haven't if this hasn't come up before, you can easily get a six-month extension to just make the exemption as straightforward as possible. It's also very easy to do online yourself, unless you have some reeeally complicated deductions or declarations, which is good news for you as you are presently paying an accountant to screw it up.

Tobias · Joined: 02 Jun 2008

Find a new accountant or do it yourself. Filing your taxes yourself is very easy to do. You'll need the IRS forms 2555 and 1040 of your choice. There is another form out there for filing an extension if you need it. I believe it's 4568. But check on that. If you pass the physical presence test on the 2555, you don't have to pay the government a cent. And if you fail the test, simply stall (using the extension form) until you do pass it.

jonbowman88 · Joined: 20 Jan 2009 Location: gwangju, s korea

Do i have to file something with the Korean government?

dimnd · Joined: 19 May 2005 Location: Western USA

I went to the IRS site last night and did the "free fillable form for extension
go to the 1040 or whichever one u use and put your name, address, social and then at the top right you click on file an extension

then the info is transferred to the 4868
put in the estimated tax owed...if any...
and then check the box that said you live out of the country....you can use a USA address (ur parents , etc..I did a lady walked me through it at IRS) and then check the box that says n/a for using checking acct to put money in , etc. further down the page and then a phone number back home...an e-mail and then the "file an extension now box is no longer whitened out on the right top of the page....not at the top bar ..but on the right side of the page even with your tax amount..and then it brings you to a little box that said...do you want to file electronically...your extension..say continue or ok...I got a box that came up that automatically gave me 6 mos.
you get 2 months if you don't file the 4868
but if you file the 4868 and you are out of the country by checking the US citizen box and living out of the country..you get 6 months. I have until October 15,2009 to file.

hope that helps others.