Korean Job Discussion Forums

[dcrespin]

SO I am teaching with EPIK on Jeju and so far everything has either worked itself out, or with a little (read alot) of patience, is on the road to being taken care of. My only concern now regards taxes and the best exemption strategy. I am american and with EPIK. SO does this mean I can either pay taxes here in Korea, and then file a 2555 (Foreign Earned Income Exclusion form) with my 1040 and have all taxes excluded from US? Or do I fill out an 8802/6166 (US Residence Certification form), not have to pay Korean taxes, but then have to pay US taxes? If the choice is between paying taxes in the US for what I earn here or just paying Korean taxes, then won't I get more in the end paying Korean taxes (considering I am single with no dependents)? Please help me I can't get a straight answer from anyone I know. Thanks in advance

[davai!]

You can't take the Foreign Income Exclusion unless you've been out of the US for 11 mos. of the entire calendar year 2007. Have you been here since January/February?

[dcrespin]

No I have not, but does this mean that upon my return to the US I can file it with my 1040? What is the best course of action?

[ulmaeri]

Last year, my hagwon took out taxes (tho I hear I could have gotten them back) and I filed the foreign income exclusion form in April this year. For 2005, I only filed my US based income, which still was low enough that I received a refund. This year, I am not paying income tax here in korea, since we should be exempt on E2 for two years. Next April, I don't know what I will do.
I think your visa status affects the tax situation also. Anyone with an F visa want to comment?

[davai!]

Officially, you file your taxes as usual, counting the overseas income, but you can take an exemption for the amount of tax paid to the foreign government.

Unofficially, you do not declare any foreign income (helps if you have US income to show something for that year).