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Korean Job Discussion Forums
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isitts
Joined: 25 Dec 2008
Location: Korea
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 Posted: Wed Mar 07, 2012 5:00 am Post subject: |
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If you work for a public school, you're exempt from paying taxes to both countries for the first two years (residency certificate exempts you from paying in Korea and the 2555 exempts you from paying to the US).
If you work at a hagwon, you're exempt from paying tax to the US (filing the 2555).
You worked at a hagwon last year? Not quite sure how that would work since you were already in Korea for a year. Maybe someone who was in your shoes could answer. But I would guess you at least have the second (of what would have been two years, had you done public school from the start) year to be free of tax from both countries.
Though...Who did you pay tax to last year? Korea, right? You may have A difficult time convincing the IRS to give you a residency certificate if you'd filed Korea as your tax home last year. Happened to me in Japan because the requirements for avoiding double taxation changed after my first year.
IRS didn't give me the certificate in Korea either, but my school (public) at the time was able to work around it. But that's not an option I would bank on.
Unless you have major sources of income back in your home country or you're making over US$91,000 a year here, you aren't going to owe Uncle Sam anything. You sure you need an accountant? |
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isitts
Joined: 25 Dec 2008
Location: Korea
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| Posted: Wed Mar 07, 2012 5:25 am Post subject: |
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| Dodge7 wrote: |
| 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? |
As long as you didn't owe anything, you can file late. And you can file without a W2 (and turbotax has an option for that).
TurboTax works but the free version doesn't have the 2555. So, you'd have to pay about $40 for the version that has it, just so you can tell the IRS you don't owe anything.
You also have to list a US address if you want to be able to e-file with turbotax, which is not a big deal if you're listing the US as your tax home.
Anyway, not sure it's worth it. the only thing you're going to be putting on your 1040 is your foreign earned income amount (in dollars) under "other income".
And file your 2555 (full version, not the EZ) for exemption under the physical presence test.
Check out the sticky on the job-related forum, too. |
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Gorf
Joined: 25 Jun 2011
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| Posted: Wed Mar 07, 2012 6:59 am Post subject: |
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| I was on unemployment from January 2011 to July 2011, and then I got a job here in Korea. I believe I have the forms with me that state my residence as being in the USA (someone told me to give them to my employer or something) but I haven't done anything with them. I opted for my unemployment to be pre-taxed. I didn't earn any money in America last year. What the heck am I supposed to do? I have no W2 and I don't have any idea what I should file. |
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isitts
Joined: 25 Dec 2008
Location: Korea
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| Posted: Wed Mar 07, 2012 5:29 pm Post subject: |
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| Gorf wrote: |
| I was on unemployment from January 2011 to July 2011, and then I got a job here in Korea. I believe I have the forms with me that state my residence as being in the USA (someone told me to give them to my employer or something) but I haven't done anything with them. I opted for my unemployment to be pre-taxed. I didn't earn any money in America last year. What the heck am I supposed to do? I have no W2 and I don't have any idea what I should file. |
Where�s Naturegirl when you need her?
If you look at the instructions for the application residency certificate (8802) on the IRS site, it�ll explain about determining your residency. I�m not sure what forms you have, but I don�t think they matter. The IRS knows where you�ve been filing your taxes from as you generally write your address on your 1040.
I think the reason I didn�t get a residency certificate last time I�d tried was because I hadn�t established a permanent residence or a permanent job in the US since leaving back in 2003. But then, some people have been outside the US for that long or longer and still got their certificate. So, I don�t know. And it doesn�t matter now that starting my third year here.
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I opted for my unemployment to be pre-taxed. I didn't earn any money in America last year.
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Not sure I understand this. If you collected unemployment, then isn�t that is money? I�ve never collected unemployment, so I don�t know much about it. But if it is taxable, you would owe taxes for it as it was earned in the US.
Anyway, if you got here in July and you file two extensions, you can file exempt for your foreign earned income (form 2555) that you made in Korea under the physical presence test (with the extensions, you�ll have been in Korea at least 330 days). File the 2555 with your 1040.
Look at the tax sticky on the job related forum. That answers more questions on the residency certificate. I�m not the one to ask, because I never received a residency certificate.
Lastly, I am not a tax advisor and I assume no liability for any problems you have taking my advice.  |
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