|
Korean Job Discussion Forums
"The Internet's Meeting Place for ESL/EFL Teachers from Around the World!"
|
| View previous topic :: View next topic |
| Author |
Message |
PatrickBateman
Joined: 08 Jun 2009
Location: American Gardens Building, West 81st Street
|
 Posted: Sat Jan 30, 2010 5:34 am Post subject: Simple question about taxes(American) |
 |
|
Okay, so I've been in Korea for nearly 8 months, but how important is it that I put this on W-2 forms? I've spoken to a few other co-workers and they're going to claim that they've been traveling? What are the repercussions if you don't put down your wages you've gotten here. On top of it, I didn't even get a tax form from work so technically I don't know what I have made here.
Thanks. |
|
| Back to top |
|
 |
Konglishman
Joined: 14 Sep 2007
Location: Nanjing
|
| Posted: Sat Jan 30, 2010 6:01 am Post subject: |
|
|
| W-2 forms only relate to working in the U.S. You should look under less common income and find the section for foreign income otherwise known as Form 2555. |
|
| Back to top |
|
|
PatrickBateman
Joined: 08 Jun 2009
Location: American Gardens Building, West 81st Street
|
| Posted: Sat Jan 30, 2010 6:04 am Post subject: |
|
|
| Konglishman wrote: |
| W-2 forms only relate to working in the U.S. You should look under less common income and find the section for foreign income otherwise known as Form 2555. |
Yes, I did find it. What I'm driving at is how important/not important it is. I read somewhere that if you make under a certain amount then they don't tax the money you've earned? |
|
| Back to top |
|
|
Konglishman
Joined: 14 Sep 2007
Location: Nanjing
|
| Posted: Sat Jan 30, 2010 6:22 am Post subject: |
|
|
| PatrickBateman wrote: |
| Konglishman wrote: |
| W-2 forms only relate to working in the U.S. You should look under less common income and find the section for foreign income otherwise known as Form 2555. |
Yes, I did find it. What I'm driving at is how important/not important it is. I read somewhere that if you make under a certain amount then they don't tax the money you've earned? |
Yes, the Foreign Income Exclusion is $91,400. So, if your foreign income is less than that, you will likely not be taxed. However, in order to qualify for the Foreign Income Exclusion, you must pass one of two requirements.
One, you can pass the physical presence test which means that you were outside of the U.S. for 330 days. Some of those 330 days are even allowed to roll over into the current tax year if that is what takes to pass the physical presence test.
Or two, you can pass the bona fide residency test which means you are basically a resident of the foreign country in question and do not plan to return to work in the U.S.
At any rate, if you are making income anywhere in the world, you are required to file a tax return. It doesn't matter if you will not owe any taxes due to the Foreign Income Exclusion. You are still required to file a tax return. You don't want to risk getting audited do you?
By the way, I have spent a lot of time consolidating information about the Foreign Income Exclusion and the Korean Income Tax Treaty.
http://forums.eslcafe.com/korea/viewtopic.php?t=175572&sid=21a36f9be10129a8e6cfbe32d6f7000c |
|
| Back to top |
|
|
PatrickBateman
Joined: 08 Jun 2009
Location: American Gardens Building, West 81st Street
|
| Posted: Sat Jan 30, 2010 6:26 am Post subject: |
|
|
Much appreciated.
I haven't received anything from my job about how much I've made, what's been deducted, or anything. What should I put down on my form? Will it matter that I was in the states until May, or is that not relevant? |
|
| Back to top |
|
|
Konglishman
Joined: 14 Sep 2007
Location: Nanjing
|
| Posted: Sat Jan 30, 2010 6:50 am Post subject: |
|
|
| PatrickBateman wrote: |
Much appreciated.
I haven't received anything from my job about how much I've made, what's been deducted, or anything. What should I put down on my form? Will it matter that I was in the states until May, or is that not relevant? |
For American living overseas, the tax return deadline is actually extended until June 15.
http://www.irs.gov/businesses/small/international/article/0,,id=97324,00.html
So, if you came to Korea sometime last May, then you should still be able to pass the physical presence test by including days in the current year going all the way up to May 2010. I think the example below is particularly explanatory.
| Quote: |
Example 2:
You work in New Zealand for a 20-month period from January 1, 2007, through August 31, 2008, except that you spend 28 days in February 2007 and 28 days in February 2008 on vacation in the United States. You are present in New Zealand 330 full days during each of the following two 12-month periods: January 1, 2007 - December 31, 2007, and September 1, 2007 - August 31, 2008. By overlapping the 12-month periods in this way, you meet the physical presence test for the whole 20-month period. Refer to Chapter 4, Figure 4-B in Publication 54, Tax Guide for U.S. Citizens and Resident Aliens Abroad. |
http://www.irs.gov/businesses/small/international/article/0,,id=96968,00.html |
|
| Back to top |
|
|
PatrickBateman
Joined: 08 Jun 2009
Location: American Gardens Building, West 81st Street
|
| Posted: Sat Jan 30, 2010 7:14 am Post subject: |
|
|
Ahh, I understand.
So basically you're saying I should wait until late April to file, right? |
|
| Back to top |
|
|
|
|
You cannot post new topics in this forum
You cannot reply to topics in this forum
You cannot edit your posts in this forum
You cannot delete your posts in this forum
You cannot vote in polls in this forum
|
|
FAQ
Search
Memberlist
Usergroups
Register
Profile
Log in to check your private messages
Log in
