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Korean Job Discussion Forums
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itsme
Joined: 04 Jan 2006
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 Posted: Tue Feb 14, 2006 6:48 pm Post subject: |
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If I have not been in a foreign country for 330 days then do I still file the 2055 form,? 2055 EZ form? or do I use the 1040 form? or the 1040 EZ form?
what if I never received a tax statement from my former employer? |
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slothrop
Joined: 03 Feb 2003
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| Posted: Tue Feb 14, 2006 8:50 pm Post subject: |
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edit
Last edited by slothrop on Tue Apr 17, 2012 9:15 am; edited 1 time in total |
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Wangja
Joined: 17 May 2004
Location: Seoul, Yongsan
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| Posted: Tue Feb 14, 2006 11:08 pm Post subject: |
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There is a new, simplified, form available ...
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Zyzyfer
Joined: 29 Jan 2003
Location: who, what, where, when, why, how?
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| Posted: Wed Feb 15, 2006 1:53 am Post subject: |
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| slothrop wrote: |
| i've been working in korea for about 7 years and haven't filed my taxes the whole time. the main reason is i didn't want to pay the exhorbant fees that korean accountants charge to do it, i think last time i checked h and r block wanted 150,000 per year, at that point it'd been 5 years, hence 750,000 won... my question is if file my taxes now for the whole time i've been here will i be penalized? also, i have a haunting suspicion that for the first few years i worked in korea, at hagwans, the owners didn't pay taxes, hence, i think if i went to the tax office and asked for a print out, it would only show that i'd been paying taxes for about 4 years, or since i started working at universities. thanx in advance |
Holy crap. Scratch that idea, then.
I can't personally vouch for it or anything, but if you file before you're caught, you're supposed to be in the clear with IRS. If they catch on to you first, though, there's some sort of penalty. |
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J.B. Clamence
Joined: 15 Jan 2003
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| Posted: Wed Feb 15, 2006 1:58 am Post subject: |
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| Wangja wrote: |
There is a new, simplified, form available ...
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That looks more like the Canadian form than the American form, except for the flag of course. |
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J.B. Clamence
Joined: 15 Jan 2003
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| Posted: Wed Feb 15, 2006 2:04 am Post subject: |
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| slothrop wrote: |
| i've been working in korea for about 7 years and haven't filed my taxes the whole time. the main reason is i didn't want to pay the exhorbant fees that korean accountants charge to do it, i think last time i checked h and r block wanted 150,000 per year, at that point it'd been 5 years, hence 750,000 won... |
Why do you need an accountant to file your taxes? If you meet the overseas exemption criteria, it's very simple. You just file 2 forms answering some very simple questions, and that's it.
As for being punished for suddenly filing after years of not filing, I'm not sure about that. You're definitely better off filing late than waiting to get caught. But if you can argue that you didn't make enough money during those years, who knows? |
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snehulak
Joined: 20 Nov 2005
Location: USA
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| Posted: Sun Feb 19, 2006 3:32 pm Post subject: |
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I arrived in Korea last August so appear to be ineligible for the foreign income exclusion, but I found the following on the Turbotax website:
"Your qualifying period as a bonafide resident may be for only part of a tax year. You must intend to reside in the foreign country for an extended period."
Does my intention to stay in Korea long term really allow me to legally claim the exemption? Have any other part-year residents successfully claimed this exemption?
I worked in the US up until April so am due a sizeable refund on those earnings, but when I enter the foreign income, my refund drops down to almost zero. I really would rather not pay the US government for services that I didn't use after leaving the country last year. |
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Wangja
Joined: 17 May 2004
Location: Seoul, Yongsan
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| Posted: Sun Feb 19, 2006 3:52 pm Post subject: |
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| J.B. Clamence wrote: |
| Wangja wrote: |
There is a new, simplified, form available ...
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That looks more like the Canadian form than the American form, except for the flag of course. |
It was a joke.
Well, I thought it was. |
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mishlert
Joined: 13 Mar 2003
Location: On the 3rd rock from the sun
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| Posted: Mon Feb 20, 2006 9:19 pm Post subject: |
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| How can we E-File from overseas? |
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Snowkr
Joined: 03 Jun 2005
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| Posted: Tue Feb 21, 2006 2:15 am Post subject: |
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Thanks to everyone who is participating here!
Who else is having to pay U.S. social security tax on income earned here?
I really would like to know!
My S.S. tax for only 5 months in Korea comes to over $1200.00! I have the foreign income exclusion (form 2555) but this does not exclude social security. No other Americans that I've spoken to are paying this kind of money in S.S. and medicaid... |
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NearlyKorean
Joined: 15 Mar 2003
Location: Phoenix, AZ
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| Posted: Tue Feb 21, 2006 7:04 am Post subject: |
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Hi,
In my short stay (6 months) in the USA, I took some of the H&R Block Tax courses. I would like to comment on some of the things here. I don't know everything and please remember this is just my advice. I will be returning to Korea in 2 days. I would be willing to help anyone who has questions. Remember too, I am not an IRS agent nor do I aspire to be. I took the courses so I could learn to legally pay as little tax as possible. I also got tired of paying for some else to do them...
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| For tax purposes would you say $1 U.S. = 1,000 won? |
No I wouldn't. You are suposed to use the basic exchange rate for the day you do your taxes. That can be checked online or in one of the English newpapers
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Who else is having to pay tax on income earned here?
I really would like to know!
My S.S. tax for only 5 months in Korea comes to over $1200.00! I have the foreign income exclusion (form 2555) but this does not exclude social security. No other Americans that I've spoken to are paying this kind of money in S.S. and medicaid... |
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I worked in the US up until April so am due a sizeable refund on those earnings, but when I enter the foreign income, my refund drops down to almost zero. I really would rather not pay the US government for services that I didn't us-e after leaving the country last year. |
Are you having to pay as US Taxes on foreign earn income?
Or are you paying Korean taxes?
You should not be paying any US taxes. including U.S. social security, if you are working for a non-US company not in the USA. Only the money you make while overseas can be included on the form 2555.
ANY money you made in the USA is still taxable and subject to all of the taxes including social securtiy.
Since you have been here for about 150 days (30 x 5 months) the amount of foreign income exemption is also reduced. The amount of foreign income you can exempt from taxes is $32,800 (150/365 =about 41%. 80,000*.41 =32,800)
Your foreign earned income exemption can NOT reduce the amount of your US taxable earned income. In other words if you made $3000 overseas, and $13,000 in the USA , you can only exempt the $3000 from taxes.
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| How can we E-File from overseas? |
There are serveral good sites and tax programs that can help. Do a search on the internet. I would recommend turbo tax. A search online would provide some places doing it for free.
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If I have not been in a foreign country for 330 days then do I still file the 2055 form,? 2055 EZ form? or do I use the 1040 form? or the 1040 EZ form?
what if I never received a tax statement from my former employer? |
You don't need a w-2 form from a foreign employer. I would recommend keeping some kind of record in a note book.
The information about the physical residence test and bona-fide test was good. He sounds like he knows what he is doing.
As mentioned earlier. if you are out of the USA on April 15, 2006. you are granted a 2-month extention automatically. Your filing isn't due until June 15, 2006. There is no penalty for filing late, if you don't owe any taxes. There are penalties if you get caught and haven't filed.
Filing the taxes is not a simple process. However, most people can do it themselves with a little research and education. If you need help, I would be more than happy to help you. Even if it is just a matter of looking them over before you file. I do have a Preparer's Tax Identification Number . There are free to get and you become legally able to charge for doing other people's taxes. I got mine just cause it looks cool.
Also check this site for the insturctions of form 2555.
http://www.irs.gov/pub/irs-pdf/i2555.pdf
Happy Refunds.
NK |
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snehulak
Joined: 20 Nov 2005
Location: USA
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| Posted: Tue Feb 21, 2006 4:19 pm Post subject: |
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Looking at IRS form 2555EZ, the physical presence test states:
Were you physically present in a foreign country or countries for at least 330 full days during:
2005 or
any other period of 12 months in a row starting or ending in 2005?
I left the US last April, so won't have 330 full days that fall within 2005.
Does my intention to stay for a full year qualify me for this exemption? I know, it's probably just wishful thinking, but is anybody else in the same boat? What did you do?[/b] |
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Zyzyfer
Joined: 29 Jan 2003
Location: who, what, where, when, why, how?
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| Posted: Tue Feb 21, 2006 6:02 pm Post subject: |
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How do you file for previous years that you missed? It's not like the 2555 form is terribly hard or anything, and I saved pay stubs from each job that show my monthly salary and deductions. Would I fill out separate applications and type up a letter explaining the situation? Do I have to go back and fill out the forms from the previous years? Do I just pile it all together and note the complete time span?
Anybody who has caught up on previous years that they missed know? |
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Snowkr
Joined: 03 Jun 2005
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| Posted: Tue Feb 21, 2006 9:20 pm Post subject: |
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I am going to assume that no one else here has been paying U.S. social security tax on Korean income.
According to H&R Block in Seoul, I don't have to pay it either. however, I've been working with a CPA at home for years who I trust and he says I do have to pay it and that it is separate from income tax. I know who I want to believe, but really... what do you do when you're told two different things by two professionals who supposedly know what they're doing?
Seriously, if anyone out there has a link for this social security agreement between the U.S. and Korea, please PM me!! |
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mishlert
Joined: 13 Mar 2003
Location: On the 3rd rock from the sun
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| Posted: Tue Feb 21, 2006 9:53 pm Post subject: |
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I am a little confused about one thing.
When filing the 2555, or 2555-EZ do we also have to file a 1040? |
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