Korean Job Discussion Forums

[Ut videam]

Actually, if you teach at a public school or university, you can have it "both ways."

According to the tax treaty, if you are a resident of the US at the beginning of your term of employment by a Korean public school or university, you qualify for the two year exemption from Korean income tax.

You must still report your income earned in Korea to the IRS using forms 1040 and 2555 (or 2555-EZ). You will not meet the bona fide residence test since you claimed US residency to obtain the exemption from Korean tax; but as you will qualify under the physical presence test, you will be exempt from taxation on the first $85,700 of foreign earned income.

Thus, it's entirely possible for both your Korean and US income tax liabilities to be zero for a period of two years.

[hochhasd]

I do not have the funds for a tax attorney. Do you know the statues that will spell out the law?

[Fresh Prince]

[hochhasd]

I appreciate the information, but if you know anyone who has experienced the same situation, I would appreciate it if you could pass this information on. Thanks

[LOVYDOVY]

UT VIDEAM:

Are you sure about this? I talked to IRS several times and they said the same thing: ' one or the other ". Where did you get your information?

[Ut videam]

[hochhasd]

Thanks for all the information, some of this is confusing to me. Could you answer the following question for me in simplified terms? If I am not paying Korean taxes from the public school and I do have to file Ever y year in the United States is there any statue saying I have to pay Social Security tax and Federal withholding from the money I earned in Korea?

[Tobias]

Ya need file when you're supposed to. If you don't, you're just asking for trouble. Not filing is a misdemeanor if the feds find out. Know their finding out may be a lot easier than people here let on. Think about it...some have been, and will be, forced out of here because of unclean CRCs. These are CRCs that may have convictions from 20 years ago. Those people may resent being sent home while others are allowed to stay here, not file tax returns, and thus commit misdemeanors in 2008. I know if I were forced out, I'd make a beeline for the nearest IRS office as soon as I got back home to let them know about people in Korea not filing returns. Just a thought.

File your return using the 2555 and 1040 every year. Cover thine ass.

[hochhasd]

I would appreciate it if you could answer my question if you know the answer. I know I have to file every year to matter what

[Tobias]

Well, first of all, you'll need to get a copy of the 2555 form, with instructions, from the IRS. It's available online via PDF. Read both the form and the directions carefully. Know that during the past 12 months, if you've spent more than 35 days in the USA, you won't be exempt from taxes on what you make in other countries. I believe if you are exempt, you don't have to worry about the April 15th deadline. Check on this to be sure, though.

As you probably know, the value of the dollar declined a substantial amount relative to the Won last year. When listing the amount of my income, I took the average value, but it didn't matter which method I used. I still would have been well under the maximum amount allowable, which is over 80,000 bones.

After completing the 2555, move to the 1040 and fill it out as if you were in the USA. The only difference is you'll be listing the amount of income you made outside the USA, in dollars, as an exemption. I don't remember which line it is. After filling out the 1040, attach some sort of "pay stub" listing your income to the form (to cover your rear) and send it to the IRS center in Austin.

I just got a 300-bone stimulus check thanks to doing the right thing, which was filing in the first place. But I always file when I'm supposed to.

[LOVYDOVY]

UT VIDEAM

Thank you

[walterkim18]

[naturegirl321]

I'd report my pension income as part of my salary. If it's more than 10K usd you can bet the US govt knows about it.