Korean Job Discussion Forums

[mellinger]

Hi,

I hope some of you can answer this question I have about US taxes. I've searched and found some stuff, but didn't find anything regarding my individual issue.

I want to become exempt from taxes this year back home, and am filling out the 2555, but am unsure whether I can claim Bona Fide Residence.

I got here in Korea on January 11th, 2007....went home for vacation on June 10th and got back here on August 6th. Since then I've been out of the US till now. Technically I reached 365 (a full calendar year) days out of the US in total on Feb. 26th.

So my question is, for those of you that know taxes....am I now concidered a Bona Fide Resident? I sure hope so....

Please let me know and thanks for all yoru help.

Mike

[Bibbitybop]

The IRS instructions say you must be out of the USA for 330 days within a 365 calendar year. If you spent more than 35 days inside the USA, I think you just nullified your out-of-country status, but the cycle started again when you left the USA again.

Maybe not related, but I came here in the month of August. At tax time, I filed for an extension in order to get to the 330 days. So I was able to wait until September to file (a month after I reached my 330 days).

[santafly]

I looked into this last week - All the info you need is on the IRS's website - you don't need to have bonafide residence, there is some other clause that will make your foriegn earnings tax exempt - although that won't cover any American earnings

[hogwonguy1979]

first there is some confusion, the stuff about being out of the US for 330/365 days is called the "Physical Presence Test"

The other is called like the "Bona Fide Residence" or "Tax Home Test" that one you prove to the IRS that you live in Korea and intend to for some time. Things that can prove it is your visa status, contract length etc. It proves that you live in Korea and will for some time. This is the test we meet when filling out our tax forms, we give the IRS our Korean address, our visa status and employer info on form 2555. You do have to put down when you are in the US and how much money you earn on "business" I was in the US for 6 weeks a couple of years ago on vacation but could prove I was on vacation because I was in Korea before that, came back and didnt earn any money there.

I do my returns online and the program I use always determines I qualify for the FIE