Korean Job Discussion Forums

[warmachinenkorea]

I work at a PS and didn't pay taxes for the first 2 years here because of the tax treaty.

However, my sister-in-law's hagwon's boss told her that because she is at a hagwon she must pay taxes. She is in the process of getting her 8802.

I thought it was every American teacher not just the PS teachers.

Anyone have experience with this?

[jonbowman88]

I believe only government employees are entitled to the 2 years of tax exemption

[LAtoSeoul]

First two years no taxes in the US and limited taxes in Korea. I did a HAgwon for two years and never had to pay any taxes in the US

[nachoinkorea]

It doesn't matter if you work at a Korean public school or a private language institute or anything like that.

The main issue is your income. If you earn more than $91,500 then you have to pay both taxes in Korea and the US. If you earn UNDER this amount, then you do not have to pay US taxes. However, you still have to FILE US taxes every year. Let me repeat that, YOU HAVE TO FILE US TAXES EVERY YEAR.

Do not, I repeat, do not listen to anyone that tells you that Americans do not have to file their taxes while they are in Korea. You most certainly do have to file your taxes. It says so right in your passport. If you want proof, then just simply apply for any US federal job. When you go through your background check, they will grill you (and your friends, family, and coworkers) about your tax records and whether or not you filed your US taxes while you lived abroad (speaking from experience here).

It does not matter whether you work at a public or private Korean company. It matters how much money you make. You still have to pay your Korean taxes (no way outta that). If you make under $91,500 per year while you are in Korea, you do not have to pay US taxes but you must file your taxes. H&R Block has an office in Korea, use them (Google is your friend, do some research).

[nathanrutledge]

That form that people get is so that they don't have to pay taxes IN KOREA. As others have said, there is a floor on taxes for foreign earned income. If you make less than that floor, you don't pay. Last I knew, it was around 86,000, but it goes up yearly to keep up with inflation. Whatever it is, you don't make that much so don't worry about it.

THE REAL CONCERN is Korean taxes. The two year exemption is only good IF you get the form from the IRS saying you are paying US taxes. Well, it actually says you have US tax liability, i.e. IF you made that much money, you WOULD pay in the US.

If you don't have the form, you ARE liable for Korean taxes. K taxes are low, on the range of 1.5-3% (for INCOME tax, on a 2-2.2 mil salary) BUT if you haven't been paying them, it DOES add up and you'll get fines as well, so you could be out a few million after a few years if you haven't filed the proper paperwork.

[koreatimes]