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are yanks still tax free in korea?

 
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mistermasan



Joined: 20 Sep 2007
Location: 10+ yrs on Dave's ESL cafe

PostPosted: Mon Jan 19, 2009 7:43 pm    Post subject: are yanks still tax free in korea? Reply with quote

are yanks still tax free in korea for the first 2 years? the boss refuses to believe such and withholds taxes in a matter reflecting his opinion.
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Poemer



Joined: 20 Sep 2005
Location: Mullae

PostPosted: Mon Jan 19, 2009 8:15 pm    Post subject: Reply with quote

Yes, but taxes are still withheld. A return should be received at tax time, make sure your boss doesn't pocket it.
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Jammer113



Joined: 13 Oct 2008

PostPosted: Mon Jan 19, 2009 8:19 pm    Post subject: Reply with quote

I'm tax free, and as far as I know, no taxes have been withheld. Health, yes. Pension, yes. Taxes, no. But does it really matter? Will your boss believe what you heard on Daves ESL? You think you're tax free. Go to the tax office and request the appropriate documents in English and Korean, then go see your boss.
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yolshim



Joined: 11 Dec 2008

PostPosted: Tue Jan 20, 2009 6:54 am    Post subject: Reply with quote

I'm tax free and just found out that it makes me ineligible for any type of tax refund. I had a folder of receipts from a recent surgery, doctor's appt's, credit card bills, car insurance, cash receipts..... I handed it all in and then got an email saying that I couldn't get anything during my tax exemption period.
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ontheway



Joined: 24 Aug 2005
Location: Somewhere under the rainbow...

PostPosted: Tue Jan 20, 2009 7:05 am    Post subject: Reply with quote

Beware. The posts above contain misinformation. Beware.


American citizens are not tax exempt in Korea.

American citizens can exclude up to $80,000 or so from their US income for US income tax purposes.

American citizens who work for public schools are exempt from Korean income taxes for up to two years under certain conditions.

American citizens who work for hogwans and private schools are NOT exempt from Korean income taxes.

I'm not sure about University teachers. But, if you work for a Unigwan you are not exempt from Korean income taxes.
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husker



Joined: 22 Dec 2004

PostPosted: Fri Jan 23, 2009 2:27 am    Post subject: Re: are yanks still tax free in korea? Reply with quote

mistermasan wrote:
are yanks still tax free in korea for the first 2 years? the boss refuses to believe such and withholds taxes in a matter reflecting his opinion.


To be exempt from Korean taxes you need certification of US residency. You need to give your school IRS form 6166 to prove this. However to get IRS form 6166 from the IRS you must complete IRS form 8802 and send this to the IRS first.

http://www.irs.gov/businesses/small/international/article/0,,id=122559,00.html
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