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Americans pay no taxes
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hagwonnewbie



Joined: 09 Feb 2007
Location: Asia

PostPosted: Sat Aug 04, 2007 5:42 pm    Post subject: Americans pay no taxes Reply with quote

I was trying to remember the rule for Americans paying taxes back home. Don't you have to work 11 out of 12 months overseas or something like that to avoid paying them. The link to it on the FAQ page doesn't work anymore. Can someone give me a different link or the info?
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KimchiExplosion



Joined: 01 Jul 2007
Location: Nowhere near Seoul

PostPosted: Sat Aug 04, 2007 7:15 pm    Post subject: Reply with quote

http://wiki.galbijim.com/Know_your_expatriate_taxation

This site rules.
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saw6436



Joined: 16 Jan 2003
Location: Daejeon, ROK

PostPosted: Sat Aug 04, 2007 8:31 pm    Post subject: Reply with quote

Just remember that even if you don't have to pay your USA taxes you must still file every year.
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Woland



Joined: 10 May 2006
Location: Seoul

PostPosted: Sat Aug 04, 2007 9:19 pm    Post subject: Reply with quote

KimchiExplosion wrote:
http://wiki.galbijim.com/Know_your_expatriate_taxation

This site rules.


It's not quite accurate about the US.

First, you do have to file every year, regardless of whether you will owe money or not. Living abroad gives you an automatic two month extension for filing, until June 15th. You can request an additional two month extension to August 15th.

Second, the deduction is now over $80,000 ($82,000 or $85,000 - I can't remember; I have an accountant do this). There are two ways to receive this deduction. I have only used one of them (for the last ten years) and will only talk about it here - the physical presence test.

Basically, you need to show that, in any 365 day period that includes some portion of the year in which you are filing a tax return for, you were physically present in the US for no more than 35 of those days. Thus, for my 2006 taxes, my accountant filed that I was in the US for exactly 35 days in the period from April 4, 2005 to April 3, 2006. The deduction is proportional to the number of days you were out of the country. Let's call 35 days 10% of 365 for purposes of this discussion; thus, I received 90% of the total deduction available. This allowed me to pay no American taxes on my income once again. In fact, I'm getting a $30 return because of the rebate to all taxpayers of the federal telecommunications tax.

A few notes. I'm no tax expert; see one before taking this advice. Any portion of any day spent in the US counts as a day. If you are leaving late on March 28th and your plane is delayed until after midnight, that's an extra day. (I doubt they go looking for this, but it must have come up because it gets mentioned.) Transiting through the US to someplace else counts as a day. I'm not sure, but presence in certain US overseas territories counts as presence for tax purposes. Again, check with someone who really is expert on this.

If your physical presence will not be enough to avoid a bite, do get good payroll records from your employer. The way my pay is arranged, only part of it is in the form of salary/wages, which are taxable. The remainder comes in a strange form that I don't understand, but which my accountant says is non-taxable in the US. If I had to pay, my declared income would be reduced because of this and my taxes lower. Taxes you pay here are deductible if you have a tax obligation in the US, as well.

The best advice I can give you is get a good accountant or tax specialist. I pay mine $175 each year for this work, well worth it in what it has saved me in hassle.
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hagwonnewbie



Joined: 09 Feb 2007
Location: Asia

PostPosted: Sat Aug 11, 2007 8:06 pm    Post subject: Reply with quote

You stated:

Basically, you need to show that, in any 365 day period that includes some portion of the year in which you are filing a tax return for, you were physically present in the US for no more than 35 of those days. Thus, for my 2006 taxes, my accountant filed that I was in the US for exactly 35 days in the period from April 4, 2005 to April 3, 2006. The deduction is proportional to the number of days you were out of the country.

So if I am out of the country from March 1, 2007 to February 01, 2008; I should only have to pay 10/12ths of my 2007 taxes, right?

This sounds simple, but I suspect that I will need to get an accountant to do my taxes also.

Thanks for the tips, y'all.
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dogshed



Joined: 28 Apr 2006

PostPosted: Sat Aug 11, 2007 8:47 pm    Post subject: Reply with quote

hagwonnewbie wrote:
You stated:

Basically, you need to show that, in any 365 day period that includes some portion of the year in which you are filing a tax return for, you were physically present in the US for no more than 35 of those days. Thus, for my 2006 taxes, my accountant filed that I was in the US for exactly 35 days in the period from April 4, 2005 to April 3, 2006. The deduction is proportional to the number of days you were out of the country.

So if I am out of the country from March 1, 2007 to February 01, 2008; I should only have to pay 10/12ths of my 2007 taxes, right?

This sounds simple, but I suspect that I will need to get an accountant to do my taxes also.

Thanks for the tips, y'all.


Here's the post I made. http://forums.eslcafe.com/korea/viewtopic.php?t=87567&highlight=tax

One minor thing. It's a calendar year as defined by the IRS and may not be exactly 365 days.
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Vince



Joined: 05 May 2003

PostPosted: Sat Aug 11, 2007 9:16 pm    Post subject: Reply with quote

I did my own taxes and submitted the overseas exemption form. The instructions say the form needs to be submitted only the first year, and it will automatically extend to the following years that you're still overseas. I didn't trust that and each subsequent year included a copy of the first year's form as a reminder.
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Apple



Joined: 29 May 2007
Location: S. Korea

PostPosted: Sat Aug 11, 2007 10:20 pm    Post subject: Reply with quote

saw6436 wrote:
Just remember that even if you don't have to pay your USA taxes you must still file every year.


Oh else what? I know guys who havent filed in 20 years..
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flakfizer



Joined: 12 Nov 2004
Location: scaling the Cliffs of Insanity with a frayed rope.

PostPosted: Sun Aug 12, 2007 1:57 am    Post subject: Reply with quote

Apple wrote:
saw6436 wrote:
Just remember that even if you don't have to pay your USA taxes you must still file every year.


Oh else what? I know guys who havent filed in 20 years..

People in the States or living abroad?
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Apple



Joined: 29 May 2007
Location: S. Korea

PostPosted: Mon Aug 13, 2007 7:13 am    Post subject: Reply with quote

both...but mostly people living abroad
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wanderingsalsero



Joined: 23 Dec 2006
Location: Houston, TX.

PostPosted: Mon Aug 13, 2007 9:40 am    Post subject: What you don't know about taxes is hurting you Reply with quote

I know this will get some less than courteous reactions but that's OK. But I've got to tell you that there is no law that says you have to pay taxes. I'm just telling you so you can't say that nobody ever told you.

The fact is that the US federal income tax is 100% voluntary and it's based on self assesment. You don't and never did have to pay it unless you wanted to. It was only the accountants and crooked lawyers who make over 50% of their income from litigating tax cases and (trying to) interpret tax laws who want you to believe that you're supposed to pay it.

Yeah, yeah....I know the IRSS doesn't like it but they don't have the power you think they do. The fact is there's hundreds of thougsands of people who don't pay and/or don't file......I haven't done either since 2000. They can't force you to pay and they know it.

If it really wasn't mandatory, do you think they'd tell you?

You can say I'm a kook if you want. That's fine with me. But do the research yourself. Yeah, there are some wierd theories about why you don't have to pay out there but there's also several (that say basically the same thing) that'll tell you very clearly and reasonably why you don't.

One very interesting video you can see is Aaron Russo's "Freedom To Fascism".....found on YouTube and I think Google Video too. I promise you.....it'll have your ears curling by the time you finish it. Just watch it before you form your final opinion.
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dogshed



Joined: 28 Apr 2006

PostPosted: Mon Aug 13, 2007 12:51 pm    Post subject: Re: What you don't know about taxes is hurting you Reply with quote

wanderingsalsero wrote:
I know this will get some less than courteous reactions but that's OK. But I've got to tell you that there is no law that says you have to pay taxes. I'm just telling you so you can't say that nobody ever told you.

The fact is that the US federal income tax is 100% voluntary and it's based on self assesment. You don't and never did have to pay it unless you wanted to. It was only the accountants and crooked lawyers who make over 50% of their income from litigating tax cases and (trying to) interpret tax laws who want you to believe that you're supposed to pay it.

Yeah, yeah....I know the IRSS doesn't like it but they don't have the power you think they do. The fact is there's hundreds of thougsands of people who don't pay and/or don't file......I haven't done either since 2000. They can't force you to pay and they know it.

If it really wasn't mandatory, do you think they'd tell you?

You can say I'm a kook if you want. That's fine with me. But do the research yourself. Yeah, there are some wierd theories about why you don't have to pay out there but there's also several (that say basically the same thing) that'll tell you very clearly and reasonably why you don't.

One very interesting video you can see is Aaron Russo's "Freedom To Fascism".....found on YouTube and I think Google Video too. I promise you.....it'll have your ears curling by the time you finish it. Just watch it before you form your final opinion.


You are a kook.

You may be right, but you could spend a lot of time in prison
and spend a lot of money on lawyers waiting
for the courts to decide you are right, and if your court case is
the one that allows everyone to not pay taxes then you will see
the government quickly pass a law or constitutional amendment
to plug the loophole, and it will probably be retroactive.

I look forward to watching your precedent setting court case
in the news.
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Vince



Joined: 05 May 2003

PostPosted: Mon Aug 13, 2007 8:24 pm    Post subject: Re: What you don't know about taxes is hurting you Reply with quote

wanderingsalsero wrote:
The fact is that the US federal income tax is 100% voluntary and it's based on self assesment.

I've heard this a few places and hope it's right. But if it is, why do people get jailed for tax evasion?
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Atavistic



Joined: 22 May 2006
Location: How totally stupid that Korean doesn't show in this area.

PostPosted: Mon Aug 13, 2007 8:37 pm    Post subject: Re: What you don't know about taxes is hurting you Reply with quote

wanderingsalsero wrote:
I know this will get some less than courteous reactions but that's OK. But I've got to tell you that there is no law that says you have to pay taxes. I'm just telling you so you can't say that nobody ever told you.


My father pays his property tax and tax on his investments. But as for income tax? He hasn't paid them since 1990. Every year he sends them the 1040 with his address, name, soc sec number, and signature\ fill out. He writes "you tell me how much I owe you" across the top.

Still doing it to this day. Never been bothered.
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wanderingsalsero



Joined: 23 Dec 2006
Location: Houston, TX.

PostPosted: Mon Aug 13, 2007 9:20 pm    Post subject: Mix of reactions as I expected..... Reply with quote

Sure'nuff....somebody says I'm a kook but somebody else says their dad basically doesn't pay.

I'm not denying that some people get sent to prison but the percentage is very very very few in comparison to the numbers of people who aren't paying and we don't know the particulars of each case.

If those people who aren't paying were really and truly in violation of a bonafide law, don't you think there would be a real, extensive, publicized apparatus for dealing with them? For years and years, Irwin Schiff frustrated the IRSS by saying simply 'show me the law....' and they never never would address that issue.

Remember Bob Schultz, the founder of We The People Foundation (google it)? He went on a hungere strike basically because the government wouldn't give him 'redress of grievances' as we're supposed to have under our Constitution. Finally they relented and promised they'd meet him but at the last minute, after he'd stopped his hunger strike and all the national publicity had died down, they went back on their word.

Fact is, there isn't any law that requires the majority of US citizens to pay a federal income tax. I actually used to have an IRSS code book (which I bought from Irwins' store....he sold more of them than anybody else in the US)...and you can't even find any penalty in it for not paying.

The IRSS deal has the power to do a lot of stuff that it's really leagally isn't authorized to do. Wow! Imagine that!! How unique!!

The IRSS deals with people on an individual basis based on several factors:

Some people who are really making waves and leading too many other citizens to freedom, like Irwin Schiff, they eventually send to prison but even then only by denying them their rights.

Plus, non of us really know the circumstances of each case. One of the points Irwin Schiff used to make (and he was totally correct) is that the law in the US has become an abomination. Nobody can understand it.....and they like it that way.

But that's they way the lawyers and the government like it. That way, the federal critters are never accountable and they can always weasel out of promises. And the lawyers are assured of a job. People generally get just as much justice as they can afford and even then it's debatable.

But honestly, isn't it sorta ridiculous to generalize about stuff like.....'they all get sent to prison'. That's the dumbest thing I ever heard. All? C'mon!

Also, I'll promise you that 101% of the time, people who shake in fear of the IRSS don't know the law and are too docile to take the initiative to find the facts for themselves (real 'American' trait isn't it?). Those people never have THEIR facts straight. Their minds are already made up.....and that's one of the primary reasons why the federal income tax survives to this day.

The other point is that whatever happened to people living by principles? So I get sent to prison.....or so you do.....are you such a *beep* and super homoginized, mind numbed robot that you're not prepared to make a sacrifice for your principles. That's why the US has become less than it used to be.....i.e. because we don't know what our principles really were and should still be.

I was very surprised to learn that the vast vast VAST majority of the things the US government spends money on are things that are not authorized by the Constitution. Actually one of the first things I said when I was being educated about what the law actually said about federal income taxes was, "What about the money necessary to run the country?"

Remember that I served my country in Vietnam for 4 years so I don't think that anybody can question that I love what my country stands for if not some aspects of what it has become. And my dad was killed in an aviation accident in WWII too. So...some of these little sophmores (which means 'wise idiot' in Latin) telling me about the reality of 'the law' ....it sorta rings hollow on my ears.

On Irwin Schiffs website www.paynoincometax.com you can now get his entire book 'The Federal Mafia' for free. Read the first couple of chapters....I'm telling ya! It'll make the hair on your head curl. And look at that Aaron Russo documentary.
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