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bocaloca
Joined: 02 Dec 2008
Location: Kimpo, Korea
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 Posted: Sat Dec 06, 2008 5:00 am Post subject: Which tax form do I need to be expempt from paying US taxes? |
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Hi,
I know that you can claim up to 85,000 in foreign income without paying taxes, but does anyone know which form I send to the IRS?
Thanks! |
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waseige1
Joined: 09 Oct 2008
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| Posted: Sat Dec 06, 2008 10:44 am Post subject: 6166 and 8802 |
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I just researched this and did my forms. I am coming to Korea in Februrary.
You need IRS form 6166 and you get it by fillling out form 8802. The form is pretty criptic and I pray I did it right. You have to send $35 to get the form 6166. |
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call_the_shots
Joined: 10 Oct 2008
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call_the_shots
Joined: 10 Oct 2008
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| Posted: Sat Dec 06, 2008 2:57 pm Post subject: Re: 6166 and 8802 |
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| waseige1 wrote: |
You need IRS form 6166 and you get it by fillling out form 8802. |
The 8802 form is a little different. That's the form you use to get the Korean income tax exemption (for those who are working at public schools). For the US income tax exemption (the $85,000 exemption), form 8802 is not necessary. |
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sarbonn
Joined: 14 Oct 2008
Location: Michigan
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| Posted: Sat Dec 06, 2008 7:55 pm Post subject: Re: 6166 and 8802 |
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| waseige1 wrote: |
I just researched this and did my forms. I am coming to Korea in Februrary.
You need IRS form 6166 and you get it by fillling out form 8802. The form is pretty criptic and I pray I did it right. You have to send $35 to get the form 6166. |
You have to send $35 to get a form? |
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jadarite
Joined: 01 Sep 2007
Location: Andong, Yeongyang, Seoul, now Pyeongtaek
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Coodge7
Joined: 02 Dec 2008
Location: Tongyeong-si, Gyeongsamnam-do
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| Posted: Sun Dec 07, 2008 2:38 pm Post subject: |
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| People should be aware that if you have not been out of the US for a full 330 days of a full Tax Year (J1 to D31) you are not qualified. That means if you began working for your school or wherever, in September, you can't file the 2555. |
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demel
Joined: 14 Oct 2008
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| Posted: Sun Dec 07, 2008 6:13 pm Post subject: |
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| << So does that mean that if I started here in September, I have to pay US tax on the September-December (calendar year 2008) Korean income? |
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Tobias
Joined: 02 Jun 2008
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| Posted: Sun Dec 07, 2008 8:05 pm Post subject: Not true |
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| Coodge7 wrote: |
| People should be aware that if you have not been out of the US for a full 330 days of a full Tax Year (J1 to D31) you are not qualified. That means if you began working for your school or wherever, in September, you can't file the 2555. |
Not true.
I came part-way through a US tax year, filed the forms 1040 and 2555, and qualified for the exemption last year. I even called the IRS help line twice and got the same answer both times before I filed, just to make sure. One does not want to tangle with the IRS, after all. According to the help guys, I was fine filing those forms. I even got the economic stimulus check about 2 months later, so I know I did it right.
You MUST file the two tax forms, and you MUST remain outside the US for the 330 days to qualify. That's it. Know that I filed my taxes in March of last year, after I had been here 330+ days. Know also that I came here AFTER February 1, so I had already blown the 330 days in a tax-year thing.
Last edited by Tobias on Sun Dec 07, 2008 8:30 pm; edited 2 times in total |
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Tobias
Joined: 02 Jun 2008
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| Posted: Sun Dec 07, 2008 8:10 pm Post subject: True and false |
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| waseige1 wrote: |
I just researched this and did my forms. I am coming to Korea in Februrary.
You need IRS form 6166 and you get it by fillling out form 8802. The form is pretty criptic and I pray I did it right. You have to send $35 to get the form 6166. |
I'll add:
Yes, getting the "proof of residency" is something everyone should do before coming to Korea. If you don't do it, your school may take taxes out of your salary, even though you may be in your first two years here. If you want your school to not deduct taxes, to stop the deductions if they are already taking taxes out, or if you want to get a refund on taxes they've already withheld, some places require you offer 'proof' you're a US resident. This is ridiculous, as you are able to get the fucking job BECAUSE you're a US resident. But that escapes them in the land of sparkles.
Enter the 8802 and 6166
You'll need to get the 6166 form by filling out and submitting another form, the form 8802 people are talking about here. This 8802 costs 35 bucks to process, and I'm sending mine off this week so I can get my refund on taxes my school has withheld (even though I AM exempt). If I don't get that form to them, I'll be shit out of luck.
For those of you who are here working for a public school and are still in your first two years, count yourselves lucky if you aren't having taxes withheld. Some of us have to jump through hoops to get our money back or get the deductions to stop.
I wish I would have known I needed this damn "proof of residency" nonsense before I came here. I would have brought it with me. No one told me I needed it. I was told "my first two years would be tax-free". Yeah, right. If I don't get that form, I'll have paid taxes on my entire second year here and the last two months of my first year here. If I don't get my local tax office the 6166, I won't ever see that money again, either, albeit I'm 'exempt' from paying taxes.
If you're coming here to work and are still in the exemption window (2 tax years), be sure you bring the 6166 with you, just in case your school goes by the book and withholds taxes on your ass. |
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Tobias
Joined: 02 Jun 2008
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| Posted: Sun Dec 07, 2008 8:41 pm Post subject: That would depend on how much you made in the US |
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| demel wrote: |
| << So does that mean that if I started here in September, I have to pay US tax on the September-December (calendar year 2008) Korean income? |
Maybe so. It would depend on how much you made in the US in 2008 before coming here. The minimum amount before one MUST file a return is around 8,500 USD now, so if you'll be below that amount for the year, you won't have to file a return. This would mean you didn't work that much in the US in 2008 before coming here, something that would apply only to rare birds. You'll have to research what the minimum reportable income amount IS now exactly.
This is the one case in which a declining won actually helps us. It reduces our reportable income back home, as the minimum amount is in dollars, if your home is the US of A. |
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yingwenlaoshi
Joined: 12 Feb 2007
Location: ... location, location!
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| Posted: Sun Dec 07, 2008 8:44 pm Post subject: |
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| This country has taxes? Fk. Learn something new every day. |
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Tobias
Joined: 02 Jun 2008
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| Posted: Mon Dec 08, 2008 6:16 am Post subject: They have deductions |
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| yingwenlaoshi wrote: |
| This country has taxes? Fk. Learn something new every day. |
Hell, they have tax DEDUCTIONS even for those who are exempt.
Some of you are lucky and never have tax deductions taken out of your salaries, even after being here beyond the first two years. For you guys in this boat, well, you're living on borrowed time. Some of us are fighting for our tax money even when we're exempt, and we may lose the battle. Believe it.
Without the IRS 6166, some of us 'exempters' will say goodbye to our tax withholdings. |
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bocaloca
Joined: 02 Dec 2008
Location: Kimpo, Korea
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| Posted: Sun Dec 14, 2008 4:18 am Post subject: Thank you! |
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Thank you all...
You have been a big help! I am sending the form and money soon, and hope all of you are well.. Happy Holidays. |
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Godhasbeengoodtome
Joined: 28 Nov 2008
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| Posted: Mon Dec 15, 2008 8:36 am Post subject: |
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| File 2555EZ with your 1040. 2555EZ is free online. That is all you need. And the 330 days rule can start anytime in the year: March to March, November to November. You can also overlap years if need be to cover two tax years. |
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