Korean Job Discussion Forums

[beatbox_bandit]

Hey everyone, I'm sorry about this as I'm sure this as been covered many times before, but the link to the thread on this topic in the FAQ is broken and the search feature seems to be timing out or something, I dunno...

Anyway, does anybody know where I can find some information about taxes for US citizens, specifically about money earned abroad? Do I need to pay taxes on my Korean income, or at least fill out some special forms? Thanks a lot, and sorry again!

[EstlHope]

You need to get a certificate of residency so that you can be exempt from paying Korean taxes for the first two years of your employment. After that, you will have to pay taxes.

You will need to fill out the form 8802.
http://www.irs.gov/pub/irs-pdf/f8802.pdf

Instructions can be found here:
http://www.irs.gov/instructions/i8802/ch01.html

In line 7, you will want to put 2009, and in line 8 it is 200912.

From what I understand, we will still need to file a tax form with the US government, but we only pay taxes on income above $70,000 per year. If you are making that as a teacher, I want to know where you are working!!

Good luck figuring it all out!

[raindrop]

If you work at a hagwon, does the 2 year Korean tax exemption apply as well? I had the impression that you had to work at either a public school or a university to get this. But if I'm wrong, someone please tell me because I will be at a hagwon and would love to not pay Korean taxes for 2 years.

[EstlHope]

From what I understand, the atx exemption is based on a treaty between the US and South Korea, not on where you are employed. I know that you can read an English version of the tax treaty on korvia's website. I'm on a cell phone right now, so I can't look up the link for you myself.

[red_devil]

WTH? We can be exempt from paying KOREAN taxes for the first two years? That's news to me, i've been paying taxes since day one.

[Pyxis]

When in comes time to file, you'll have an automatic extension, so you won't need to file until June 15. At that time you'll to file your regular 1040 as well as the form 2555 for your foreign earned income.

I've usually filed just using TurboTax online. You'll end up paying an extra 40ish dollars because you'll need to upgrade from their free version, but it was worth it to me to save me from the hassle of trying to figure out everything on my own.

[beatbox_bandit]

Thanks everyone! Looks like the Korean tax exemption is only for those teaching at colleges and universities.

http://travel.state.gov/travel/living/teaching/teaching_1240.html

Scroll down to the tax information

[red_devil]

[EstlHope]

I'm pretty sure that any US citizen working in South Korea gets the tax exemption for two years. Here is the actual tax treaty that you can read. It is kinda long and boring, but it has all of the information that you need.

http://www.korvia.com/downloads/tax_agreement/taxation_agreement_us.pdf

[ACT III]

I have no idea about the Korean two year exemption but I do know that you must file taxes in the USA. When you use taxact which is free you can submit the 2555 which is exemption up to 83? Thousand dollars a year. You still have to file every year but you don't pay any taxes in the states. I think if your exempt in Korea than you must pay taxes in the states. (I really doubt that both countries would let us slide from taxes.)

[laynamarya]

Just so you know, if you happen to be from Massachusetts, you have to change your permanent residence (and pass a bonafide residency test) to S. Korea in order to NOT owe taxes to the Commonwealth. It's the only state that does not exempt foreign-earned income, though, so if you are from any other state, don't worry about it.

[Pyxis]

[carleverson]

What's the extension date for filing taxes this year?

[carleverson]

Did you guys file your taxes yet?

We have until June 15 to get it done.

The maximum foreign earned income exclusion for tax year 2009 is $91,400.

[naturegirl321]