Korean Job Discussion Forums

[ironclad80]

It's almost that time of the year again in the U.S. My accountant back home said I might be subject for some U.S. taxes ?? He wants to know if I pay any taxes here. I work in a public school this year (hagwon last year) and I got the IRS certificate for proof of U.S. citizenship in Korea, which makes me tax exempt here ? Correct me if I'm wrong, I only know it was a requirement...

He wants some paperwork from here. All I have are my monthly pay stubs.

Can anyone shed some light on this?

[ironclad80]

*bump*

My school told me today I'm covered by a tax treaty the U.S. has with numerous countries yet some expats tell me otherwise. Not sure what to do. Perhaps this is the wrong forum, job related...

[nathanrutledge]

if you are public school, you are tax exempt in Korea for two years, provided you got the paperwork from the US.

You are exempt from paying taxes on up to 92,000+ of your foreign earned income (it changes each year - this year, I BELIEVE it's 92,500, but I don't have my tax form in front of me) AS LONG AS YOU FILE THE 2555 FORM.

If you have other income in the US, then yeah, pay your taxes. There are lots of ways around paying your taxes.

For example, if you pay taxes HERE, you can deduct those from what you owe the US. That's probably why your accountant wants to know if you paid here. You can also deduct certain living expenses for living in a foreign country - again, if you file the proper forms.

Long story short, you don't have to pay Uncle Dick sam for your income in Korea (unless you make more than 92k a year). You can deduct lots of things you pay in Korea from your US taxes. So, get what your accountant wants and avoid paying taxes!

[ironclad80]

I'm in a public school now, but was in a hagwon before. I got the paperwork that makes me tax exempt in Korea.

Didn't make a cent in the U.S. in 3 years and obviously didn't make anywhere near 92k.

So basically just file the 2555 form and I'm good to go? Who should I list as employer? My current employer or employer during the previous tax period? I'm not on good terms at all with my old hagwon so I'd rather avoid them at all costs, especially if there's a chance they'd be contacted.

[nathanrutledge]

If you didn't make any money in the states, why are you using an accountant? I know the tax system sucks, but really, an accountant for this?

The tax exemption stuff is only for being exempt in Korea. It has zero bearing on the US.

Every year you should file the form 2555 with your 1040. As far as who to put, just put down your employer. As for who to write for the employer, check the form 2555 instruction book. I don't know off the top of my head, but it probably wouldn't matter what you put - the IRS has no information from them, and they aren't going to call/contact them anyway, so it doesn't matter.

[ironclad80]

[ThingsComeAround]

[ironclad80]

[ThingsComeAround]

I see...

Still, your accountant seems better than the one for my family. He told me I didn't need to file at all which complicated things the next year when I learned he was wrong.

If you prefer to use a professional, there is an H&R Block office in Seoul that does taxes for a reasonable amount (150K)

[luckylady]

first of all, it sounds like there's some confusion here over the term accountant vs. cpa.

a cpa (in the U.S.) can file taxes for anyone in the U.S., that is, any state resident, including one that's overseas, and would not be as confused as the op's accountant apparently is regarding overseas employment for Americans.

I've been using a cpa for years, including while overseas, and have never regretted it, regardless of how simple some say it is. she asks me who I worked for and how much I made, and that's it. she files, I sign, pay $125 and I'm good to go.

I've met way too many Americans living abroad who blow off doing their taxes only to be met w/penalties and fines later on - or scared to even return due to their having been lax with regards to filing at all.

it's not hard, it's the adult and responsible thing to do, just take care of it and you'll sleep better at night.

and yes, there is an H&R Block in Seoul.

*addendum* expats working overseas automatically have an extension until June 15th every year - that's right - we don't have to abide by the April 15th deadline.

[ironclad80]

[Dodge7]

I didn't file for last year (2010 tax year.) I don't even know how to file. How can you file if you don't get any W2's from your employer? Is this something I can do from TurboTax? And what do I do about not filing tax year 2010?

[ironclad80]

[ironclad80]

You seem to be the most knowledgeable about this issue and my situation is a little tricky so can I ask you a few questions? I do want to sleep good at night

Ok, it seems the 2555 form is for 2011 and a 12 month period.

Last year I finished a contract at a hagwon in February, obviously I paid taxes there. I went home to the U.S. until I found a new job which is at a public school.
I started that job which I'm currently at in mid-May 2011. I don't pay Korean taxes here because I submitted the certificate of citizenship to my school which I got from the IRS.

What is my next step? Thank you VERY much!

[isitts]