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Swampfox10mm
Joined: 24 Mar 2011
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 Posted: Tue Jan 31, 2012 10:36 pm Post subject: The tax man cometh. How much are you getting dinged for? |
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With the exception of people like Americans here fewer than 2 years, who pay very little in tax, many of us are going to have to pay in this year (depends on many factors, though).
Just figured taxes with my university. After deductions, I'm still having to pay back about 140,000. If I hadn't applied any deductions, I would have had to pay in over 500,000.
These numbers sure stink, given that I used to enjoy at least a million won return every year.
How about you? Any info on what you're taxes will be? |
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ttompatz
Joined: 05 Sep 2005
Location: Kwangju, South Korea
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| Posted: Tue Jan 31, 2012 10:46 pm Post subject: Re: The tax man cometh. How much are you getting dinged for |
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| Swampfox10mm wrote: |
With the exception of people like Americans here fewer than 2 years, who pay very little in tax, many of us are going to have to pay in this year (depends on many factors, though).
Just figured taxes with my university. After deductions, I'm still having to pay back about 140,000. If I hadn't applied any deductions, I would have had to pay in over 500,000.
These numbers sure stink, given that I used to enjoy at least a million won return every year.
How about you? Any info on what you're taxes will be? |
Not sure about YOUR taxes but on a gross salary of ~40 million, I have a total tax liability this year (2011) of 1.9 million (all of which was prepaid).
About 5% of my gross salary.
Your average EFL teacher with no dependents on a salary of 2.2 million (~26.4 million annual salary) should have a tax bill of about 554,000 won (about 2.1% of his gross salary). If he was paying about 46k won per month for taxes he should owe nothing.
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Last edited by ttompatz on Tue Jan 31, 2012 10:58 pm; edited 1 time in total |
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Swampfox10mm
Joined: 24 Mar 2011
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| Posted: Tue Jan 31, 2012 10:50 pm Post subject: |
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| So many variables at play. But overall, those of us here long-term are paying a lot more in taxes than a few years ago. My school doesn't seem to have adjusted our monthly checks much this year to make up for the additional taxes, unfortunately. |
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Swampfox10mm
Joined: 24 Mar 2011
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| Posted: Tue Jan 31, 2012 11:31 pm Post subject: Re: The tax man cometh. How much are you getting dinged for |
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| ttompatz wrote: |
| Swampfox10mm wrote: |
With the exception of people like Americans here fewer than 2 years, who pay very little in tax, many of us are going to have to pay in this year (depends on many factors, though).
Just figured taxes with my university. After deductions, I'm still having to pay back about 140,000. If I hadn't applied any deductions, I would have had to pay in over 500,000.
These numbers sure stink, given that I used to enjoy at least a million won return every year.
How about you? Any info on what you're taxes will be? |
Not sure about YOUR taxes but on a gross salary of ~40 million, I have a total tax liability this year (2011) of 1.9 million (all of which was prepaid).
About 5% of my gross salary.
Your average EFL teacher with no dependents on a salary of 2.2 million (~26.4 million annual salary) should have a tax bill of about 554,000 won (about 2.1% of his gross salary). If he was paying about 46k won per month for taxes he should owe nothing.
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In a perfect hagwon world, maybe. I haven't known many schools that do it properly, and even still it is not uncommon for schools to cheat on taxes... sometimes at the expense of the teacher. One well-known poster on here got a call from the tax man telling him he owed nearly 10 million in back taxes because his school had never actually paid them (he worked at the same school several years). Also, many of us work in jobs that pay A lot of OT or have a base quite a bit higher than the pay rate you posted.
It will be interesting to see how many people were lucky enough to have schools that adjusted to compensate for the massive rate hike (which proved a rude awakening for many last year). My taxable income went up from 3.3 to around 15 percent last year. This meant I lost the over 1 million won tax return I was getting, and now have to pay back in.
I am sure we will be seeing a few OMG posts in the next two months. Should be interesting! |
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cedarseoul
Joined: 16 Feb 2008
Location: nowon-gu
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| Posted: Wed Feb 01, 2012 3:35 pm Post subject: |
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My employers always handle taxes for the teachers, but I pre-figured for myself and my wife. Her previous employer didn't withhold enough, and we're going to be on the hook for well over a million between us.
Our earnings are quite high, though, for hagwon. (All legal--we just work long hours.  ) So that's part of the issue. :shrug: Gotta pay the piper I suppose. |
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zappadelta
Joined: 31 Aug 2004
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| Posted: Wed Feb 01, 2012 3:51 pm Post subject: |
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| Damn, forgot to do my taxes this year! Anyone else? |
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CaliUSA
Joined: 30 Jan 2011
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| Posted: Wed Feb 01, 2012 3:56 pm Post subject: |
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Wanted to ask for advice. I'm a US citizen, moved to Seoul in May, worked a summer job at a hagwon and, since Aug., have been at a uni.
After checking the IRS website, my understanding is that I pay taxes on my "world income"--the money I made in the USA *and* in Korea. I can just convert the won amounts to dollars using an online converter.
Meanwhile, I can claim the taxes I've already paid (or will pay?) in Korea as a tax credit on my US tax form. (I could also claim the Korean taxes as a reduction in my taxable US income, but it's better to take it as a credit, as the IRS website advises.)
Do I have this right?
Thanks in advance. |
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ttompatz
Joined: 05 Sep 2005
Location: Kwangju, South Korea
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| Posted: Wed Feb 01, 2012 4:01 pm Post subject: Re: The tax man cometh. How much are you getting dinged for |
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| Swampfox10mm wrote: |
It will be interesting to see how many people were lucky enough to have schools that adjusted to compensate for the massive rate hike (which proved a rude awakening for many last year). My taxable income went up from 3.3 to around 15 percent last year. This meant I lost the over 1 million won tax return I was getting, and now have to pay back in.
I am sure we will be seeing a few OMG posts in the next two months. Should be interesting! |
If your rate went from 3.3 to 15% either you had a MASSIVE jump in earnings or someone screwed up in your tax calculations.
The tax scales are still progressive and the rate increases weren't that big.
Yes, they took the 30% of gross pay deduction away but even still you must be making BIG bucks to get into the 15% scale range. Even with an annual salary in the 60 million won range the annual taxes are only 5.5 million (about 9%)
http://www.nts.go.kr/eng/help/help_53.asp?top_code=H001&sub_code=HS05&ssub_code=HSE3
Use the progressive tax calculation and NOT the 15% flat tax.
Input your ANNUAL salary and not your monthly salary.
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Carbon
Joined: 28 Jan 2011
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| Posted: Wed Feb 01, 2012 4:05 pm Post subject: |
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| Getting a healthy return this year! |
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Swampfox10mm
Joined: 24 Mar 2011
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| Posted: Wed Feb 01, 2012 4:41 pm Post subject: |
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| Hmm.... I am going to check into this. I could swear they used 15% this year and last. Do I dare go to the tax office or elsewhere with my paperwork to check? If they are doing it wrong for me, they are doing it wrong for 20 other foreigners. |
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ttompatz
Joined: 05 Sep 2005
Location: Kwangju, South Korea
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Swampfox10mm
Joined: 24 Mar 2011
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| Posted: Wed Feb 01, 2012 10:29 pm Post subject: |
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I double-checked with a person who used to work in the biz office. The taxes were done correctly. They did use the progressive method. We matched all of the numbers with those on the website you provided, using the progressive calculator, and the results were very close.
I think the confusion was that the lowest rate possible to pay is 15% on the portion of income which is taxable (actually, 15% is the second lowest bracket). You were figuring overall. I was speaking of that which is taxed.
So they did do my taxes correctly. And thanks to the removal of the 30% deduction we used to enjoy (whatever that's called), I went from enjoying a 1 million + won return every year to oweing between 200,000 and 500,000 won at the end of the year... apparently based on how the school collects tax throughout the year. |
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Swampfox10mm
Joined: 24 Mar 2011
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| Posted: Wed Feb 01, 2012 10:37 pm Post subject: |
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Tom, here is a link to what I'm talking about with the brackets. It's the bold type in the middle. I make probably mid-level univ. instructor pay, and make too little to qualify for the 6% bracket:
http://i1207.photobucket.com/albums/bb464/swampfox10mm/tax.jpg
Maybe that makes more sense to you than me. |
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Swampfox10mm
Joined: 24 Mar 2011
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| Posted: Fri Feb 10, 2012 8:47 am Post subject: Re: The tax man cometh. How much are you getting dinged for |
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| Swampfox10mm wrote: |
It will be interesting to see how many people were lucky enough to have schools that adjusted to compensate for the massive rate hike (which proved a rude awakening for many last year). My taxable income went up from 3.3 to around 15 percent last year. This meant I lost the over 1 million won tax return I was getting, and now have to pay back in.
I am sure we will be seeing a few OMG posts in the next two months. Should be interesting! |
Yup.... I'd say they tax freak-out threads are now beginning! |
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bbud656
Joined: 15 Jun 2010
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| Posted: Sun Feb 12, 2012 2:37 am Post subject: |
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| How do you find out what you owe? I dont really know the breakdown on what I pay for tax, Im hoping nothing because I am a US citizen and Ive only been here 1.5 years. |
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