Korean Job Discussion Forums

Jake E. Lee · Joined: 08 Mar 2004

Hi all,
I'm from the states, and I've been working in Korea for 2.5 years and during that time I have not filed an income tax. Another tax deadline is looming and I feel nervous about not filing. I called H.R. Block in Itaewon and they charge somewhere around 200K won for their service. Do any of you use their services? Do I stand to get into some serious trouble if I don't file for a few years?

cheeky monkey · Joined: 18 Aug 2004

well, lucky for you (if you spent at least 330 days of each year that you worked here, which im sure you did) you are exempt from filing federal taxes (not sure about state, check with their dept of revenue homepage)

this does not, however, exempt you from filing a return for those years. in order to do this, get the "physical presence test exemption form" (should be easy enough to find) and the 1040 form you need off the irs.gov website for all years you didn't file. then fill them out, and send them in. if you don't owe the government money, they can't fine you for not filing (i think you have to do it within, like 7 years or something, though--not totally sure).

having said that, i will also say that many many people in your situation do not file returns for these taxes they are exempt from paying. S. Korea does not send wage information of US workers back to the US, so there is really no way the IRS would ever find out. there is a Social Security agreement between the two nations, so the only benefit you get from filing exempt is SS credit for those years.

the irs.gov website offers a wealth of information on this topic, just takes a few hours of really boring reading.

Jake E. Lee · Joined: 08 Mar 2004

Thanks for letting me save 200K won.

iiicalypso · Joined: 13 Aug 2003 Location: is everything

I know that many states offer free or reduced filing online. I did my Massachusetts taxes and Federal taxes for a otal of about 20 dollars last year. Check your states Department of Revenue site for information.

jaykimf · Joined: 24 Apr 2004

You are legally required to file but as long as you don't owe any money I don't think there is any financial penalty. One thing people should be aware of though is that if you were to marry a Korean and wanted them to immigrate to the U.S., you will have to produce your tax returns, no exceptions. In that case you will really wish you had kept up to date. Its not that hard to do yourself.