Korean Job Discussion Forums

[matthews_world]

I'm a newbie here in Korea and began teaching the end of November of 2002.

Is it necessary to claim any Korean income tax that I paid and also any salary that was paid me?

What proof will I need to show the IRS concerning income tax paid?

I'm sure these questions have been asked several times.

Any useful websites for US taxpayers about this issue?

Any help would be welcome.

[Zyzyfer]

If you've been here up to 330 days and haven't made over $80,000 you are exempt from taxes. There's more to it than that, but I think that's all that's relevant to you for now. You still have to file...as do I. -_-

[bucheon bum]

There is some form you have to fill out. It is quite simple- takes 5 minutes to do. You have to attach it to a 1040 as well. I don't remember if you have to fill out the 1040 as well (probably do).

For the info you want, go to: http://www.irs.gov/individuals/overseas/index.html

Like Zyzyfer said, you have to be here for 330 days or more w/in a year's time. Since you've only been here since November, I believe what you've been making since Nov. applies to NEXT year's tax return, not the one due this April. In any case, you don't need any proof about income tax paid or anything like that.

[mack the knife]

you have to file a 2555EZ

[rasta man]

think he was talking about claiming Korean Income Tax paid against any US taxes paid. Given he just got here in Nov 2002 it is likely he has paid some US taxes According to pub 54 you can do this, I would just add up the Income tax withheld from your pay stubs and convert it to dollard using the exchange rate on the day you file.

The big question is how to claim the foreign income exclusion for 2002. Given he has been here only since Nov using a Jan 1-Dec 31 tax year that may be tough and tougher to use a Nov 1 - Oct 31 tax year. If you don't have much US income just declare it and not exempt it (talking about $3000) big question which we don't know the answer to is how much did he earn in the US in 2002? That will determine what he should do.

If he doesn't owe US taxes than its worthless to claim the Korean taxes paid, he won't get it back. If the reverse is true then do it.

HTH

[matthews_world]

Thanks so much for the help.


So Americans that have been here for more than 330 days need to file the form.

I shouldn't worry about claiming Korean income tax paid for the 30 odd days I was here in 2002.

[matthews_world]

It's tax season again and I'm trying to figure out the Form 2555 as I qualify.

It's a bit complicated.

I added up my income and put it on Line 27.

Should the end result be 0. Or do we have to pay double taxes in the U.S.?

I thought you guys could help before I go see a tax preparer. I'm anxious to see your responses.

[J.B. Clamence]

[justagirl]

What if you weren't outside the US for 330 days, but made no money in the US?

Example: Went home to get married in 2003. Was home for 3 months. Didn't work at all. Worked the other 9 months in Korea. Paid Korean taxes.

Will I have to pay US taxes for what I made in Korea, esp. curious since I already pay Korean tax and because the income bracket is SOOOO low. I made about $14,000 last year.

justagirl

[kangnamdragon]

Can we download that form online?

[J.B. Clamence]

[kangnamdragon]

Well, we have 2 more months, I guess I should do it soon.

[matthews_world]

[matthews_world]

Okay, so I got some help and did my taxes for this year, my first full year in Korea.

Some tips when you complete Form 2555:

1. Line 40 - enter your foreign earned income exclusion. If you made more than $80,000, then you include the difference and PAY taxes on it.

2. Line 41 - If you pay for your own housing, you include it on top of your income.

3. Line 43 - This is the amount you enter on the 1040, Line 22.

If it's less than $80,000 then this will be a negative amount. Enter it like this: <11,111.00> You won't have to pay taxes on it.

If it's greater than $80,000 then just write the difference on the tax form and preceed to pay taxes on it.

4. Proceed through the rest of the 1040.


Hope this helps you guys. This may help other foreign tax payers make sense. I'm sure other foreigners need to report their foreign income after 1 year.

[OiGirl]