| View previous topic :: View next topic |
| Author |
Message |
NYC_Gal 2.0
Joined: 10 Dec 2010
|
 Posted: Sun Jan 22, 2012 2:41 pm Post subject: |
 |
|
I did the same with my taxes back home. I always paid in more and got a lovely tax refund every year. It was forced savings.
As for software, tons of people do that in America. My family just prefers using an accountant, because there are some tricky deductions and dependencies that are best left to a professional. I'd rather pay the accountant to do my taxes. I make money from some long-term investments, so it's not just a simple form for my Korean income. |
|
| Back to top |
|
 |
kimchi_pizza
Joined: 24 Jul 2006
Location: "Get back on the bus! Here it comes!"
|
| Posted: Sun Jan 22, 2012 5:52 pm Post subject: |
|
|
| Has anyone gone thru H&B Block's Korean office? Your experience? |
|
| Back to top |
|
|
cedarseoul
Joined: 16 Feb 2008
Location: nowon-gu
|
| Posted: Sun Jan 22, 2012 5:54 pm Post subject: |
|
|
| nate1983 wrote: |
I believe you are exempt from reporting if you had no tax liability the previous fiscal year and you have none for the year for which you're filing.
There's some rule like that, but I'm not totally sure it applies to the Foreign Earned Income Exclusion. Regardless, tax evasion is not something you wanna mess around with. |
My understanding is that the no-liability filing exemption does NOT apply if you are claiming the form 2555 exclusion. Theoretically the IRS can deny the exclusion if you don't file the proper paperwork--though I'm not sure whether they exercise that power.
In general: the IRS has a mandate to focus audits (and penalties) on taxpayers who actually owe. It's not advantageous to expend time/manpower/resources on taxpayers who are obviously not going to owe anything (and the IRS is well aware that foreign English teachers fall below the foreign exclusion cutoff).
Bottom line for me is that I file every year, just to keep my ducks in a row. But to those who have NOT filed...don't panic, just get caught up. Incidentally, I always use a paper form...I find that it's easier than these "simplified" online programs. |
|
| Back to top |
|
|
Ocalmy
Joined: 18 Oct 2011
|
| Posted: Sun Jan 22, 2012 7:02 pm Post subject: |
|
|
| I haven't bothered filing in the United States for three years. Now I've got to fill out a FAFSA in order to get stafford loans for graduate school. I'm going to file right away, but does anyone know how financial aid for grad school works when you haven't had income in the United States? |
|
| Back to top |
|
|
madoka
Joined: 27 Mar 2008
|
| Posted: Sun Jan 22, 2012 8:17 pm Post subject: |
|
|
| NYC_Gal 2.0 wrote: |
As for software, tons of people do that in America. My family just prefers using an accountant, because there are some tricky deductions and dependencies that are best left to a professional. |
While this difference shouldn't matter to most NETS, I agree that accountants are way, way better than software.
Back when I worked in an office, I would use tax software. I had no assets, just the income from my job, and no investments. I figured it was simple enough to plug in my W2. Using the most popular tax program, it said I owed a few thousand dollars every year. One year, I tried using an accountant who was a former IRS agent. With nothing substantially changed from the previous year, I received almost a $5000 refund. After that experience, I swore off all tax software and to this day I curse those lame programs. YMMV. |
|
| Back to top |
|
|
isitts
Joined: 25 Dec 2008
Location: Korea
|
| Posted: Sun Jan 22, 2012 9:29 pm Post subject: Re: What if I don't report my Korean Income? |
|
|
| dereklee003 wrote: |
I actually tried to use the h&r block free file and Turbo Tax free online to do my taxes. My efile was rejected twice. Not sure why. They emailed me a super long list of tax jargon I don't understand and when I logged in to fix it, they said I have to send it by mail?
So...what if I was just to file my taxes but report no income for both U.S. and Foreign? |
"tax jargon"? Form 2555 isn't available on the free version of turbotax. And even if you file on the paid version, you have to use a US address if you want to e-file. Don't know about H&R Block, but I imagine it's the same. |
|
| Back to top |
|
|
NYC_Gal 2.0
Joined: 10 Dec 2010
|
| Posted: Sun Jan 22, 2012 10:36 pm Post subject: Re: What if I don't report my Korean Income? |
|
|
| isitts wrote: |
| dereklee003 wrote: |
I actually tried to use the h&r block free file and Turbo Tax free online to do my taxes. My efile was rejected twice. Not sure why. They emailed me a super long list of tax jargon I don't understand and when I logged in to fix it, they said I have to send it by mail?
So...what if I was just to file my taxes but report no income for both U.S. and Foreign? |
"tax jargon"? Form 2555 isn't available on the free version of turbotax. And even if you file on the paid version, you have to use a US address if you want to e-file. Don't know about H&R Block, but I imagine it's the same. |
Yes, with H&R Block I need a US address. I use my parents' address for all matters that require a US address, including credit cards. Is this really a problem for most people? |
|
| Back to top |
|
|
isitts
Joined: 25 Dec 2008
Location: Korea
|
| Posted: Sun Jan 22, 2012 10:54 pm Post subject: Re: What if I don't report my Korean Income? |
|
|
| NYC_Gal 2.0 wrote: |
| isitts wrote: |
| dereklee003 wrote: |
I actually tried to use the h&r block free file and Turbo Tax free online to do my taxes. My efile was rejected twice. Not sure why. They emailed me a super long list of tax jargon I don't understand and when I logged in to fix it, they said I have to send it by mail?
So...what if I was just to file my taxes but report no income for both U.S. and Foreign? |
"tax jargon"? Form 2555 isn't available on the free version of turbotax. And even if you file on the paid version, you have to use a US address if you want to e-file. Don't know about H&R Block, but I imagine it's the same. |
Yes, with H&R Block I need a US address. I use my parents' address for all matters that require a US address, including credit cards. Is this really a problem for most people? |
Not necessarily. I did that last year. But I'm not sure it was worth spending $40 dollars for the paid version of turbotax just so I could get a 2555.
The address thing...well, I haven't looked at turbotax since last year. Can't remember if it wanted your primary address or your current address. At the time I was trying to get a residency certificate anyway, so wanted to use a US address. I think this time around, I'll likely list my address in Korea as my address since I already got my two years of tax exemption in Korea.
None of the deductions that turbotax finds for me will matter since I'll be exempt from US taxes anyway. |
|
| Back to top |
|
|
NYC_Gal 2.0
Joined: 10 Dec 2010
|
| Posted: Sun Jan 22, 2012 11:50 pm Post subject: |
|
|
It's up to you, after all. Just hope that you don't get audited in the future. You likely wouldn't owe money, but it's always so much easier when you have each year's tax forms in a file at both the accountant's office and your home office/filing system. I just have my parents hold onto my tax/stock/banking documents when I'm out of the country to make everything easier, but if I didn't have that option, I'd have them all forwarded on to me.
$40 is less than a night out on the town, but if you can do it for free, that's great. You're a grown up. File your taxes. |
|
| Back to top |
|
|
isitts
Joined: 25 Dec 2008
Location: Korea
|
| Posted: Mon Jan 23, 2012 12:20 am Post subject: |
|
|
| NYC_Gal 2.0 wrote: |
It's up to you, after all. Just hope that you don't get audited in the future. You likely wouldn't owe money, but it's always so much easier when you have each year's tax forms in a file at both the accountant's office and your home office/filing system. I just have my parents hold onto my tax/stock/banking documents when I'm out of the country to make everything easier, but if I didn't have that option, I'd have them all forwarded on to me.
$40 is less than a night out on the town, but if you can do it for free, that's great. You're a grown up. File your taxes. |
? What? I'll still file my 1040 and 2555.  I just won't use turbotax. |
|
| Back to top |
|
|
NYC_Gal 2.0
Joined: 10 Dec 2010
|
| Posted: Mon Jan 23, 2012 1:42 am Post subject: |
|
|
| isitts wrote: |
| NYC_Gal 2.0 wrote: |
It's up to you, after all. Just hope that you don't get audited in the future. You likely wouldn't owe money, but it's always so much easier when you have each year's tax forms in a file at both the accountant's office and your home office/filing system. I just have my parents hold onto my tax/stock/banking documents when I'm out of the country to make everything easier, but if I didn't have that option, I'd have them all forwarded on to me.
$40 is less than a night out on the town, but if you can do it for free, that's great. You're a grown up. File your taxes. |
? What? I'll still file my 1040 and 2555. I just won't use turbotax. |
Sorry. That last bit wasn't directed towards you, but towards those who say that they don't file. <<olive branch>>
Yeah, if it's free or cheap go for it. |
|
| Back to top |
|
|
12ax7
Joined: 07 Nov 2009
|
| Posted: Mon Jan 23, 2012 4:39 am Post subject: |
|
|
| NYC_Gal 2.0 wrote: |
I did the same with my taxes back home. I always paid in more and got a lovely tax refund every year. It was forced savings.
As for software, tons of people do that in America. My family just prefers using an accountant, because there are some tricky deductions and dependencies that are best left to a professional. I'd rather pay the accountant to do my taxes. I make money from some long-term investments, so it's not just a simple form for my Korean income. |
I also have long-term investments. But, they fall within the category of income for which non-residents don't have to file since the taxes are automatically deducted.
| madoka wrote: |
While this difference shouldn't matter to most NETS, I agree that accountants are way, way better than software.
Back when I worked in an office, I would use tax software. I had no assets, just the income from my job, and no investments. I figured it was simple enough to plug in my W2. Using the most popular tax program, it said I owed a few thousand dollars every year. One year, I tried using an accountant who was a former IRS agent. With nothing substantially changed from the previous year, I received almost a $5000 refund. After that experience, I swore off all tax software and to this day I curse those lame programs. YMMV. |
Further proof that the American tax code is a mess. |
|
| Back to top |
|
|
NYC_Gal 2.0
Joined: 10 Dec 2010
|
| Posted: Mon Jan 23, 2012 9:52 am Post subject: |
|
|
| It isn't a mess if you pay a guy who specializes in taxes. I wouldn't try to do my own dentistry. |
|
| Back to top |
|
|
Reggie
Joined: 21 Sep 2009
|
| Posted: Mon Jan 23, 2012 9:58 am Post subject: |
|
|
| In 2007, I tried to file mine with TurboTax, but it wouldn't accept since I was in a foreign country. I had to mail the IRS for an extension. After I got back to the USA a few months later, I logged back onto TurboTax and clicked "send." |
|
| Back to top |
|
|
Yaya
Joined: 25 Feb 2003
Location: Seoul
|
| Posted: Mon Jan 23, 2012 7:02 pm Post subject: |
|
|
I agree that filing is good but then again, other posters say they know of people (including themselves) who haven't filed in decades. Though the IRS has stepped up its activities, I hear that you have a less than 1 percent chance of being audited.
But remember, the U.S. Embassy can check if you've been filing your U.S. taxes when renewing your passport. |
|
| Back to top |
|
|
|
FAQ
Search
Memberlist
Usergroups
Register
Profile
Log in to check your private messages
Log in
