Korean Job Discussion Forums

takethree · Joined: 20 Mar 2013

So I read the Taxation sticky, and I'm still confused. Here's my situation. I started teaching on my E-2 visa at the end of September 2013. I am leaving Korea (permanently) in March. So my 2013 tax season earnings in Oct, Nov, and Dec were all in Korea.

It's my understanding that IRS Form 2555 allows you to exclude a certain amount of foreign earned income, provided you pass either the bona fide residence test or physical presence test. However, upon reading the form instructions, I don't think I qualify since I won't be here long enough (only ~6 months).

Anyone have advice on what exactly I should do for my US tax return this year? Just report the income as "other income" and not try to claim the foreign exclusion? Or something else?

Stain · Joined: 08 Jan 2014

I don't remember exactly, but I know in my second year here, I sent them a document showing how much I made with a letter explaining my situation with no form at all. I never heard back from them and that's been years ago.

Stain · Joined: 08 Jan 2014

young_clinton · Joined: 09 Sep 2009

You have to be present in a foreign country or countries for at least 330 days out of a full year. You won't be able to exclude your foreign income unless you go to another foreign country from South Korea to work in or stay and the total number of days you are outside of the US is 330 days. To further look at this you can go to www.irs.gov and pull up Pub. 54 in a search on the site.

PRagic · Joined: 24 Feb 2006

correct. you do not qualify for the overseas earned income exemption. if your pay was low enough, though, you might not het nailed for too much given the basic automatic exemptions everyone can claim.

takethree · Joined: 20 Mar 2013

Thanks for the response everyone. So how should I report the income? It seems the Form 2555 is only for those claiming the exemption. The income was delivered to me via bank direct deposit, and I will get no tax statements from my employer.

FYI, it was about $5300. I have enough US income from last year to have to file a return, but I just don't know what form (and how) to list it on.

Cheers.

PRagic · Joined: 24 Feb 2006

Well, if your overseas accounts at any time hit US 10K in total, you need to declare them to a separate agency using a different form. The filing date for that is different, too, so look that up.

The easiest way to figure out if that income was reported would be to go to your local tax office and pull up your income statement for the year. If that 5300 bucks isn't on there, you just got a tax free bonus. That document is what you'll use when filing your US taxes regargdless of whether or not you file the 2555

takethree · Joined: 20 Mar 2013

PRagic · Joined: 24 Feb 2006

Go check. If she hasn't been reporting, she will be responsible for paying the back tax. You said she does deduct taxes from your monthly salary, so you should be OK. Do you have your ARC? Insurance card?

You'd be surprised just how low some employers Dan get to skim off the already low income provided to NETs. Some actually have the Gaul to deduct taxes, pension, and health care, but don't actually report, pay into or provide any of them.