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Sprite06
Joined: 20 Sep 2010
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 Posted: Tue Jan 11, 2011 12:03 pm Post subject: U.S. Citizen. Tax Exemption information? |
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Can someone who has been through the process and understands the details lend some legit advice?
I've read that in order to be exempt from Korean taxes, we file an 8802 form, receive a 6166, then turn that into our school/board for exemption from KOREAN taxes.
What's the deal with U.S. taxes?
Do we need to file anything to be exempt from paying U.S. income tax? Or do we just not report anything?
Is it "against the rules" to be exempt from both? |
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ttompatz
Joined: 05 Sep 2005
Location: Kwangju, South Korea
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| Posted: Tue Jan 11, 2011 4:17 pm Post subject: Re: U.S. Citizen. Tax Exemption information? |
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| Sprite06 wrote: |
Can someone who has been through the process and understands the details lend some legit advice?
I've read that in order to be exempt from Korean taxes, we file an 8802 form, receive a 6166, then turn that into our school/board for exemption from KOREAN taxes.
What's the deal with U.S. taxes?
Do we need to file anything to be exempt from paying U.S. income tax? Or do we just not report anything?
Is it "against the rules" to be exempt from both? |
You are still required to file your US taxes but there is a LARGE ($80k+) foreign earned income exemption (the first $80k+ is tax exempt) so you end up paying nothing.
.. |
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SeoulESLteacher09
Joined: 29 Mar 2009
Location: South Carolina
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| Posted: Tue Jan 11, 2011 5:20 pm Post subject: |
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what do you do if you have foreign income, but you don't qualify for the foreign income exclusion?
I was only in Korea for 60 days in 2010. To qualify for the exclusion you have to be there 330 days.
I dont want to be double taxed. I've already paid taxes in Korea so I shouldn't have to pay them again in the US on the same income.
Anyone know? Anyone know what to do if you dont qualify? |
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olsanairbase
Joined: 30 Aug 2010
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| Posted: Tue Jan 11, 2011 5:38 pm Post subject: |
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| SeoulESLteacher09 wrote: |
what do you do if you have foreign income, but you don't qualify for the foreign income exclusion?
I was only in Korea for 60 days in 2010. To qualify for the exclusion you have to be there 330 days.
I dont want to be double taxed. I've already paid taxes in Korea so I shouldn't have to pay them again in the US on the same income.
Anyone know? Anyone know what to do if you dont qualify? |
There is no 330 day rule. The rule is you can declare up to 80K (which keeps going up each year). There is nothing in the Internal Revenue Code about how long you must be working outside the US. In fact even the scientists were able to get their income excluded while they were working in Antarctica.
I am sure you can as well. |
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Sprite06
Joined: 20 Sep 2010
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| Posted: Tue Jan 11, 2011 6:30 pm Post subject: Re: U.S. Citizen. Tax Exemption information? |
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| ttompatz wrote: |
| Sprite06 wrote: |
Can someone who has been through the process and understands the details lend some legit advice?
I've read that in order to be exempt from Korean taxes, we file an 8802 form, receive a 6166, then turn that into our school/board for exemption from KOREAN taxes.
What's the deal with U.S. taxes?
Do we need to file anything to be exempt from paying U.S. income tax? Or do we just not report anything?
Is it "against the rules" to be exempt from both? |
You are still required to file your US taxes but there is a LARGE ($80k+) foreign earned income exemption (the first $80k+ is tax exempt) so you end up paying nothing.
.. |
Thanks for the quick reply ttompatz, I appreciate it. |
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red_devil
Joined: 30 Jun 2008
Location: Korea
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| Posted: Tue Jan 11, 2011 6:40 pm Post subject: Re: U.S. Citizen. Tax Exemption information? |
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| Sprite06 wrote: |
Can someone who has been through the process and understands the details lend some legit advice?
I've read that in order to be exempt from Korean taxes, we file an 8802 form, receive a 6166, then turn that into our school/board for exemption from KOREAN taxes.
What's the deal with U.S. taxes?
Do we need to file anything to be exempt from paying U.S. income tax? Or do we just not report anything?
Is it "against the rules" to be exempt from both? |
We can be exempt from KOREAN taxes?? That's news to me... |
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SeoulESLteacher09
Joined: 29 Mar 2009
Location: South Carolina
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| Posted: Tue Jan 11, 2011 7:26 pm Post subject: |
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| olsanairbase wrote: |
| SeoulESLteacher09 wrote: |
what do you do if you have foreign income, but you don't qualify for the foreign income exclusion?
I was only in Korea for 60 days in 2010. To qualify for the exclusion you have to be there 330 days.
I dont want to be double taxed. I've already paid taxes in Korea so I shouldn't have to pay them again in the US on the same income.
Anyone know? Anyone know what to do if you dont qualify? |
There is no 330 day rule. The rule is you can declare up to 80K (which keeps going up each year). There is nothing in the Internal Revenue Code about how long you must be working outside the US. In fact even the scientists were able to get their income excluded while they were working in Antarctica.
I am sure you can as well. |
Actually its $91,000 for 2010
to qualify you must meet one of these requirements:
**A U.S. citizen who is a bona fide resident of a foreign country or countries for an uninterrupted period that includes an entire tax year
**A U.S. resident alien who is a citizen or national of a country with which the United States has an income tax treaty in effect and who is a bona fide resident of a foreign country or countries for an uninterrupted period that includes an entire tax year, or
***A U.S. citizen or a U.S. resident alien who is physically present in a foreign country or countries for at least 330 full days during any period of 12 consecutive months
That last part confuses me.....it says ANY period of 12 months.....doesnt say it has to be in this year.....I was for the whole 2009....so technically do I qualify?
How do I avoid double taxation?? I don't want to owe taxes on @$5,000 that I've already paid taxes on...... |
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ttompatz
Joined: 05 Sep 2005
Location: Kwangju, South Korea
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| Posted: Tue Jan 11, 2011 8:14 pm Post subject: Re: U.S. Citizen. Tax Exemption information? |
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| red_devil wrote: |
We can be exempt from KOREAN taxes?? That's news to me... |
IF you work at a public school or a publicly funded university AND you are NOT Canadian you can be exempted from Korean taxes for the 1st two years of employment in Korea.
This is NOT the case if you work at a private company or hagwan.
. |
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northway
Joined: 05 Jul 2010
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| Posted: Tue Jan 11, 2011 10:01 pm Post subject: Re: U.S. Citizen. Tax Exemption information? |
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| ttompatz wrote: |
| Sprite06 wrote: |
Can someone who has been through the process and understands the details lend some legit advice?
I've read that in order to be exempt from Korean taxes, we file an 8802 form, receive a 6166, then turn that into our school/board for exemption from KOREAN taxes.
What's the deal with U.S. taxes?
Do we need to file anything to be exempt from paying U.S. income tax? Or do we just not report anything?
Is it "against the rules" to be exempt from both? |
You are still required to file your US taxes but there is a LARGE ($80k+) foreign earned income exemption (the first $80k+ is tax exempt) so you end up paying nothing.
.. |
Unless you're from Taxachusetts. Though I think I'm going to go ahead and not pay any of those. |
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