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AwesomeA
Joined: 21 Dec 2006
Location: Yeosu
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 Posted: Mon Nov 19, 2007 6:57 pm Post subject: Two-year local and U.S. tax exemption for American citizens |
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Hello,
I am wondering what forms I have to submit to a school to get this tax exemption. Can I obtain these from the net or do i have to have them sent over? |
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LarrytheGiraffee
Joined: 12 Feb 2006
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| Posted: Mon Nov 19, 2007 7:14 pm Post subject: |
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The form you need is #8802. You can download it from the IRS website.
You need to decide though, if you want to pay taxes here in Korea or back in the US. By obtaining the Certificate of Residency (form 8802), you are not allowed to file for a tax exemption in the US. We pay far fewer taxes here, so you might want to think carefully about your choice. |
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KYC
Joined: 11 May 2006
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| Posted: Mon Nov 19, 2007 7:16 pm Post subject: Re: Two-year local and U.S. tax exemption for American citiz |
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| AwesomeA wrote: |
Hello,
I am wondering what forms I have to submit to a school to get this tax exemption. Can I obtain these from the net or do i have to have them sent over? |
You can download one from the IRS website. I'm sure someone on Dave's will kindly show you the link (I dont have it--sorry). I was also told you could obtain one locally (I can't remember the how and where). However, I never bothered to get one and my school automatically exempted me from the tax. I didnt have to show them any forms. |
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Atavistic
Joined: 22 May 2006
Location: How totally stupid that Korean doesn't show in this area.
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| Posted: Mon Nov 19, 2007 7:17 pm Post subject: |
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| Aren't Americans and some other group...Canadians maybe? exempt from paying tax if they work at a public uni or public school for the first two years? What's up with that? I didn't have to fill out any sort of form. |
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Lostone7
Joined: 08 Jun 2006
Location: SE Asia
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| Posted: Mon Nov 19, 2007 7:30 pm Post subject: |
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| Atavistic wrote: |
| Aren't Americans and some other group...Canadians maybe? exempt from paying tax if they work at a public uni or public school for the first two years? What's up with that? I didn't have to fill out any sort of form. |
YES Americans do get a 2year exemption at PS. But, we are "required" to get the IRS forms. However, many school do overlook this requirement and just give it to you.  And some give it to you longer than two years  |
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Boodleheimer
Joined: 10 Mar 2006
Location: working undercover for the Man
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| Posted: Mon Nov 19, 2007 8:01 pm Post subject: |
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i did the 8802 and i'm still waiting for them to send me something. lazy irs.
Larry the Giraffe: i was under the impression that if you're not physically present in the US for 330+ days in a year, you don't have to pay anything for earning under ~$80,000 |
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MarionG
Joined: 14 Sep 2006
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| Posted: Mon Nov 19, 2007 8:17 pm Post subject: |
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You don't have to pay anything on earnings up to $80,000, IF
1) you are absent from the US for 300+ continuous days during the tax year-I've forgotten how many days exactly, and
2) you ARE paying taxes in some other country.
But heck, if you prefer to pay high US taxes instead of low Korean taxes, by all means, file the form... |
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AwesomeA
Joined: 21 Dec 2006
Location: Yeosu
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| Posted: Mon Nov 19, 2007 8:27 pm Post subject: |
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| Thanks for the repiles. |
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dogshed
Joined: 28 Apr 2006
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| Posted: Mon Nov 19, 2007 8:29 pm Post subject: |
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| LarrytheGiraffee wrote: |
The form you need is #8802. You can download it from the IRS website.
You need to decide though, if you want to pay taxes here in Korea or back in the US. By obtaining the Certificate of Residency (form 8802), you are not allowed to file for a tax exemption in the US. We pay far fewer taxes here, so you might want to think carefully about your choice. |
You are wrong. You can get both the Korean and the US tax break. Please do a search and read my other posts. |
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dogshed
Joined: 28 Apr 2006
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| Posted: Mon Nov 19, 2007 8:30 pm Post subject: |
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| MarionG wrote: |
You don't have to pay anything on earnings up to $80,000, IF
1) you are absent from the US for 300+ continuous days during the tax year-I've forgotten how many days exactly, and
2) you ARE paying taxes in some other country.
But heck, if you prefer to pay high US taxes instead of low Korean taxes, by all means, file the form... |
You are wrong. Please search for my other posts. |
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dogshed
Joined: 28 Apr 2006
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| Posted: Mon Nov 19, 2007 8:33 pm Post subject: |
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| Lostone7 wrote: |
| Atavistic wrote: |
| Aren't Americans and some other group...Canadians maybe? exempt from paying tax if they work at a public uni or public school for the first two years? What's up with that? I didn't have to fill out any sort of form. |
YES Americans do get a 2year exemption at PS. But, we are "required" to get the IRS forms. However, many school do overlook this requirement and just give it to you. And some give it to you longer than two years |
The school has no idea what the form is. I ordered a transcript which is free from the IRS and then they never asked me for the forms. Try giving them
a transcript and see if the take it. |
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Atavistic
Joined: 22 May 2006
Location: How totally stupid that Korean doesn't show in this area.
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| Posted: Mon Nov 19, 2007 8:49 pm Post subject: |
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| dogshed wrote: |
| LarrytheGiraffee wrote: |
The form you need is #8802. You can download it from the IRS website.
You need to decide though, if you want to pay taxes here in Korea or back in the US. By obtaining the Certificate of Residency (form 8802), you are not allowed to file for a tax exemption in the US. We pay far fewer taxes here, so you might want to think carefully about your choice. |
You are wrong. You can get both the Korean and the US tax break. Please do a search and read my other posts. |
I found this post, Dogshed.
http://forums.eslcafe.com/korea/viewtopic.php?t=87567&highlight=tax+exclusion
So basically you mean that you can go under the US-Korea tax treaty (the reason public school teachers are exempt for two years) AND not pay any taxes as long as you use the physical presence test?
Did you do this this year? Did it work? |
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sjk1128
Joined: 04 Feb 2005
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| Posted: Mon Nov 19, 2007 10:56 pm Post subject: Taxes are a good deal once you get your employer to file |
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It does indeed "work" because that is how the tax laws are written. It's not a scam; it's just your legal right. I have not paid any US income tax since I have been in Korea because I have been exempt in the US, having not been present for the required number of days and having not worked or earned income in the US. I have also been exempt in Korea because I am from the US. Last year, however, rather than fight with the head of the office at my public school about whether or not I was exempt, I fought with him to force him to file my taxes at all. I was due to get everything back anyway, apart from 30,000 won, because of all the deductions given to foreign workers here. Do not let your employers rip you off. Read through the information and make sure they file correctly. The links below are for 2006. The 2007 info should be out by the end of the year. Taxes should be done by your employer in January, and many people should get almost everything back if it stays the same as previous years:
Tax home page
http://www.nts.go.kr/eng/
Calculator
http://www.nts.go.kr/eng/front/jungsan2006/refer_2006jungsan_eng.asp
Guide for foreign English teachers
http://www.nts.go.kr/front/service/publish_book/valgan_book_view.asp?news_seq=5808
(Then click on the link to the guide.)
When you leave Korea, you also get back 200% of what you pay in to the pension fund. This is part of why Korea is a sweet deal for English teachers in terms of money. |
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dogshed
Joined: 28 Apr 2006
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| Posted: Mon Nov 19, 2007 11:24 pm Post subject: |
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| Atavistic wrote: |
| dogshed wrote: |
| LarrytheGiraffee wrote: |
The form you need is #8802. You can download it from the IRS website.
You need to decide though, if you want to pay taxes here in Korea or back in the US. By obtaining the Certificate of Residency (form 8802), you are not allowed to file for a tax exemption in the US. We pay far fewer taxes here, so you might want to think carefully about your choice. |
You are wrong. You can get both the Korean and the US tax break. Please do a search and read my other posts. |
I found this post, Dogshed.
http://forums.eslcafe.com/korea/viewtopic.php?t=87567&highlight=tax+exclusion
So basically you mean that you can go under the US-Korea tax treaty (the reason public school teachers are exempt for two years) AND not pay any taxes as long as you use the physical presence test?
Did you do this this year? Did it work? |
I suppose it depends on what you mean by work. You can fill out
all your US tax forms incorrectly and pay the wrong amount
and the IRS may not catch it at first. However, they have
a few years to catch any mistakes and when they do you will
have to pay fees, interest, and maybe penalties. If they
think you were intentionally breaking the law then you can
be charged criminally.
The IRS may accept your payment, give you a refund, or say
nothing and then turn around and tell you it was all wrong.
There is no way to know if anything worked. |
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xtchr
Joined: 23 Nov 2004
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| Posted: Mon Nov 19, 2007 11:49 pm Post subject: Re: Taxes are a good deal once you get your employer to file |
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| sjk1128 wrote: |
When you leave Korea, you also get back 200% of what you pay in to the pension fund. This is part of why Korea is a sweet deal for English teachers in terms of money. |
Just to clarify: not every teacher gets this benefit. It depends on which country you're from. |
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