Korean Job Discussion Forums

JFuller317 · Joined: 10 Oct 2008

Sorry if this has been answered before. I tried to do a search, but the site only gives me a blank screen instead of my search results. Someone should fix that.

I'm an American, first of all, so U.S. rules apply.

I came to Korea recently and was told that I would be exempted from paying income taxes if I filled out some paperwork. I downloaded the IRS Form 8802 and am in the process of filling it out.

I've only filed my taxes in the U.S. once in my life. I never made enough money to need to while I was in college. The first year after college, I held a full-time job where I earned enough to file, although I ended up getting a refund. The next year, I came to Korea and worked in a hagwon, where I paid taxes every month (they never told me about the exemption).

Since I haven't paid U.S. income taxes since 2008, do I still qualify for this exemption?

Also, question 5 of the 8802 asks if I was required to file a U.S. tax form for the tax period on which this certification will be based. I have no idea what to say here. Isn't the certification based on 2010? In that case, wouldn't I not be required to file a U.S. tax form, since I'm living overseas and making less than $25k a year? If I answer no, I'm supposed to attach an explanation; anyone have a suggestion for what to write here?

Also, for question 10, it asks for a "Penalties of Perjury statement and any additional required information." Is this where I would write my explanation for why I answered no for question 5?

This whole thing is quite confusing.

Also, being here in Korea, how can I pay the $35 fee?

tired of LA · Joined: 06 Nov 2006 Location: Seoul

The search function on this site only works if you enter one word in the search field. Anymore, than all you will get is a blank page.

I have never filed form 8802, so I don't know what the qualifications are for the exemption. But unless it states you must have filed taxes a certain number of times, I don't see why you wouldn't qualify for it.

Also note that the Korean tax exemption is only for public school and university employees. Hagwon employees do not receive the exemption. Also, you are only exempt your first two years, in Korea.

For question number 5 you are still required to file a tax return even if you are living and working aborad, even though you probably won't owe anything. Also, the thresehold for whether or not you need to file a tax return is not $25k, but something closer to $8,000 or $9,000.

For question 10, yes that's where you would write your explanation, but it's moot since you are still required to file a tax return.

To pay the fee, you would need to write a check, drawn from a US bank. If you don't have a US checking account, then get a friend or family member to write a check.

JFuller317 · Joined: 10 Oct 2008

I didn't file a tax return last year, and the IRS never made any fuss about it. Will that complicate things this year?

mmstyle · Joined: 17 Apr 2006 Location: wherever

http://www.google.com/cse/home?cx=006359271486458796786%3A_ooozypbm6u

I recommend the above link for searching dave's.

Also, (and if the search function worked, you would have found many threads about this) the US govt does expect you to file even if you know you are exempt (for 2008 it was n the neighborhood of 90,000USD, I haven't filed for 2009 yet, so I am not sure). I have filed for a past year with no issues (my first year in Korea, and i was similarly confused and waited an extra year to file).

You do know that if you do not pay taxes here, you are expected to pay them in the US and if you do not pay them in the US you are expected to pay them here? I know that some people decide not to file anywhere, but I do so that I can prove income, etc, in the future, if I decide to buy a house or something like that.

My school thought I would want to use the form to exempt me from Korean taxes, but I explained that if I did not pay here, I would have to pay back home. I choose to pay here because taxes in Korea are much lower. Just food for thought

JFuller317 · Joined: 10 Oct 2008

The school hasn't been withholding any taxes because they anticipate me filing this paperwork. What would happen if I never did file it? Would I end up getting black-listed from Korea once they found out?

JFuller317 · Joined: 10 Oct 2008

Also, my contract runs from December 2009 - December 2010. Would I list 2009 or 2010 on the 8802 form?

mmstyle · Joined: 17 Apr 2006 Location: wherever

JFuller, you could just ask them to withhold retroactively, that is what my school did when they found out that I wanted to pay here rather than home.

teecee · Joined: 18 Feb 2010

Another follow-up: sorry for the redundancy of my question but I'm also an American (actually British, but with a green card so with residency in the US) and I work in GEPIK. I came to Korea Feb. '09 and didn't work at all in the States during 2009. I think I'd rather file here in Korea but would I need to fill out the 6166 form?

JFuller317 · Joined: 10 Oct 2008

I'm getting such mixed opinions on this.

Many people seem to be of the opinion that Americans don't have to pay ANY taxes on foreign earnings under a certain level, which most of us teachers don't come close to reaching. In that case, it seems to be a good idea to fill out the exemption form.

The last time I filed taxes in the U.S. was in spring 2008, for the calendar year of 2007. So would I list 2007 on this form?

Korussian · Joined: 15 Sep 2007