Korean Job Discussion Forums

[SeoulESLteacher09]

I know you have to do the foreign income exclusion, but what exchange rate do you use? I know how much I made in Korean won, but I don't know what exchange rate to use.

does anyone know?

[themagicbean]

http://www.fms.treas.gov/intn.html#rates

Doubt they could complain with their figure. I'm not sure if it's just the Dec 31 close or the yearly average, I believe it's the former but the latter is availalble somewhere. In any case unless you're over about 90k US it doesn't much matter.

[T-J]

[SeoulESLteacher09]

I was hoping there would be some honest kind person who has experience with this who would be willing to give advice...people who have been in korea and have filled out taxes in America should know....Are there any honest people left in this world?

I'm just going to use the yearly average for 2009 for the exchange rate but I do have a question......

i was in south korea for all of 2009....do I still need to fill out a 1040? I don't know what to put on it. I didn't make any money in the US..

I'm going to fill out the 2555ez

[T-J]

Read the above post again, I answered your question with a reference.

[SeoulESLteacher09]

sorry if I sound like a real dumba**, but I don't know how to fill out the 1040 when I didn't earn anything in the US.......do I just put zeros everywhere? What line do I report my foreign income on?

There are a lot of people on this board....surely someone knows the answers.....I still have faith that there are decent people in this world who want to help the confused people like me.

I saw your reference which stated: Report amounts in U.S. dollars, using the exchange rates in effect when you actually or constructively received the income.

The exchange rate changed everyday......so someone told me to use the yearly average...if its wrong then they can just hunt me down--their instructions are too vague.......their statement tells me nothing...

or does it mean that I need to find the exchange rate for each month? If I got paid on the 10th of every month, then I need the exchange rate for the 10th of every month. Thats a whole lot of work.

[Lolimahro]

You are supposed to put all income you earned on the 1040 - overseas or otherwise. There is a line later down for writing in the amount you made overseas (the amount you have on your 2555) that will be subtracted to figure your taxable income.

[themagicbean]

The instructions for 1040 and 2555 tell you what to put on what line. Your US income goes in the income line. Then you put, I think on the last "above the line" (before AGI) deduction line, all of your foreign earned income.

Not to be rude but RTM.

[brandonlk]

You have to fill out both the 1040 and the 2555. Fill out the 1040 just like you would if you were in the US. If you have any questions just message me and I will ask my friend who has worked for the IRS for the past 7 years.

[revspook]

I think the real question is "how do I avoid paying taxes in the U.S. on my income here?"

Just to be clear, the expression tax avoidance refers to legally not paying taxes on income, while illegally dodging taxes is typically referred to as tax evasion.

[moosehead]

Hey Op - there is an H&R Block in Seoul -

I had a cpa do my taxes every year I was in K - you stil have to file, no matter what, but you should know the fact you are overseas automatically gives you an extension so it's not due until June 15, not April 15, ok?

pay a few bucks and get it done right, it's worth the peace of mind

[revspook]

[bobtheduck]

So you always have to file 1040. Thing is, according to the rules about exclusions, I can't file for the other one because I haven't been out of the US for 10 months straight. I don't get the exclusions, in other words.

When it does come time for the exclusions, how are you supposed to prove how much you made to the IRS?

[uklathemock]

[moosehead]