Korean Job Discussion Forums

[CaliUSA]

My apologies if this has been dealt with before. 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 paid 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.)

Is this basically correct? Thanks in advance

[ttompatz]

Foreign earned income exemption - the first ~$90k is tax exempt.

I can't remember the last time I heard of an ESL teacher making more than $90,000 per year in Korea.

.

[duke of new york]

You just need to fill out form 2555, and you are exempted from up to $92,900 in income made abroad. The instructions are here.

[CaliUSA]

Thanks! That is great news for me.

So for my US taxes, then, I should probably fill out a partial-year-residency tax form (ie, reflecting the fact that I lived in the country for 4 1/2 months, not 12 months)? Seems like I probably do owe Uncle Sam *some* taxes. (I'm one of those crazy welfare-state supporting Dems, for what it's worth

[CaliUSA]

To clarify the above post: I mean paying taxes on my income earned in the US from Jan-April.

Thanks, Ttompatz and Duke of New York!

[nate1983]

I believe you'll have to wait until you've satisfied the physical presence test to file for the exemption, but you should get an automatic filing extension til June anyway since you're living abroad.

[duke of new york]