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red_devil

Joined: 30 Jun 2008 Location: Korea
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Posted: Tue Dec 29, 2009 5:20 am Post subject: Tax Law Skewed for Americans? |
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I heard from a guy that while it's true that we don't have to pay US taxes on anything under $80K, if we end up double taxed since we have to pay US taxes. Other country foreigners do not have to or their limits are much much higher like $200,000+ |
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caniff
Joined: 03 Feb 2004 Location: All over the map
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Posted: Tue Dec 29, 2009 7:23 am Post subject: |
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Skewed against Americans?
Maybe I'm not reading your post correctly. |
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reactionary
Joined: 22 Oct 2006 Location: korreia
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Posted: Tue Dec 29, 2009 7:27 am Post subject: |
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I think he means it's skewed against us americans earning over 80,000 USD a year. |
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runthegauntlet

Joined: 02 Dec 2007 Location: the southlands.
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Posted: Tue Dec 29, 2009 7:31 am Post subject: |
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That made absolutely no sense, OP.
Try again. |
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Konglishman

Joined: 14 Sep 2007 Location: Nanjing
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Posted: Tue Dec 29, 2009 7:37 am Post subject: |
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reactionary wrote: |
I think he means it's skewed against us americans earning over 80,000 USD a year. |
Actually, the foreign income exclusion limit is now 91,000 USD. On the other hand, if you get a certificate of residency from the IRS, then you can avoid paying extra taxes in Korea. |
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mc_jc

Joined: 13 Aug 2009 Location: C4B- Cp Red Cloud, Area-I
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Posted: Tue Dec 29, 2009 8:14 am Post subject: |
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I think he meant screwed.
But there are very few Americans (even fewer American ESL teachers) who earn over the taxable limit.
Luckily Obama is not Kerry. I read in the Financial Times before the elections in '04 that Kerry wanted to tax all Americans living overseas, regardless of their income.
I have to pay income tax anyway because I get W2s for my work onbase. |
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Konglishman

Joined: 14 Sep 2007 Location: Nanjing
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Posted: Tue Dec 29, 2009 8:23 am Post subject: |
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mc_jc wrote: |
I think he meant screwed.
But there are very few Americans (even fewer American ESL teachers) who earn over the taxable limit.
Luckily Obama is not Kerry. I read in the Financial Times before the elections in '04 that Kerry wanted to tax all Americans living overseas, regardless of their income.
I have to pay income tax anyway because I get W2s for my work onbase. |
I thought that all military personnel working overseas are granted the foreign income exclusion. |
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Hyeon Een

Joined: 24 Jun 2005
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Posted: Tue Dec 29, 2009 8:30 am Post subject: |
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If you earn more than 91k a year I suggest you get a non-residency deal (talk to your accountant, I'll assume you have one if you're making this kind of money). In this case you'll be A-OK.
If you're worried about being 'discriminated against' it's the US government, that's desparate for your tax dollars, not the Korean one. The Korean government doesn't care whether you're from the US, Canada, the UK, Belgium, France or South Africa.
The US government is the most discriminatory in the world... against its own citizens  |
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big_fella1
Joined: 08 Dec 2005
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Posted: Tue Dec 29, 2009 12:57 pm Post subject: |
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Hyeon Een wrote: |
The US government is the most discriminatory in the world... against its own citizens  |
Sorry to hijack but I think a lot of children who were born in Guam by Korean parents are going to be upset with mum and dad when they start working and paying taxes. |
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mc_jc

Joined: 13 Aug 2009 Location: C4B- Cp Red Cloud, Area-I
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Posted: Tue Dec 29, 2009 3:24 pm Post subject: |
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Quote: |
I thought that all military personnel working overseas are granted the foreign income exclusion. |
Thats a common misconception.
Servicemembers, civilian employees and contractors are only exempt when they are serving in an active combat zone like Afghanistan or Iraq. Korea was taken off the list in the 1990's. I remember when I first arrived here my salary was tax exampt because Korea shouldered a large burden of funding the operations here at the time. Now its more or less 50/50. |
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