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Tax Question; need to explain it to my coteacher

 
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You



Joined: 31 May 2009

PostPosted: Mon Jan 18, 2010 10:54 pm    Post subject: Tax Question; need to explain it to my coteacher Reply with quote

Hey guys,
I'm a US citizen working under GEPIK for a Public School. My salary is 2.2 million a month. I did research before I came here about being tax exempt in Korea for 2 years. From what I researched that meant that for those two years I would be paying US taxes. Meaning, there was no way to be tax exempt from BOTH countries, and I had to choose one to pay taxes to. So, if I pay the Korean tax, when I file my taxes in the us I won't have to pay US taxes, just the Korean tax.

My co-teacher just called me about 2 minutes ago asking if I had applied to be tax exempt for two years. I tried to explain this to her and she said she would have to call our secretary and then call me back.

I'm starting to doubt my research now (feeling insecure) Can someone help me think of a way to explain to her what I wrote above without making it sound too complicated? I have my information correct right?

EDIT:

My coteacher just called again and said she called the head of the school board for our city and that woman said I /have/ to file this paper. She directed me to this page. I can't open the file though so I can't read what it says.

http://cge.ken.go.kr/contents/tbl_e_01_02/main_pds_content.asp?pds_no=20090519130436227188166&PageNo=1&category=

Also, I tried to do a search, it just comes up with a white page and when I google search daves esl cafe and taxes it gives me stuff from years ago.
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OculisOrbis



Joined: 17 Jul 2006

PostPosted: Mon Jan 18, 2010 11:20 pm    Post subject: Reply with quote

you had to submit some form from your home country to your school before you received your first paycheck to get tax-exempt status. it's not a big deal because if your school does your tax settlement properly, you should get almost everything back anyway.
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You



Joined: 31 May 2009

PostPosted: Mon Jan 18, 2010 11:27 pm    Post subject: Reply with quote

Tax exempt status from which country? The US or Korea? I thought the form was just to be tax exempt in Korea, but that's not my aim.

Maybe I'm confusing the meaning of your post though.
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OculisOrbis



Joined: 17 Jul 2006

PostPosted: Mon Jan 18, 2010 11:54 pm    Post subject: Reply with quote

i was talking about korea, but, from what i have heard, don't you have to make more than $80 000 US/yr before you pay taxes in the US on your foreign income?
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Konglishman



Joined: 14 Sep 2007
Location: Nanjing

PostPosted: Tue Jan 19, 2010 12:52 am    Post subject: Reply with quote

You wrote:
Tax exempt status from which country? The US or Korea? I thought the form was just to be tax exempt in Korea, but that's not my aim.

Maybe I'm confusing the meaning of your post though.


You need to get the Certificate of Residency from the IRS. It takes about 45 days to get. This document will allow you to take advantage of the reciprocal tax treaty between the US and South Korea thereby exempting you from paying the Korean income tax. Also, more importantly, this does not disqualify you from the Foreign Income Exclusion. However, you are still required to file your taxes with the IRS.

Earlier, I had a very detailed explanation written up. Unfortunately, when I pressed submit, the daveseslcafe website logged me out. And now, I want to get some sleep (I am on vacation right now in the US). Perhaps, I will go ahead and explain in full detail tomorrow after I wake up.

Anyways, I strongly advise you to call up the IRS yourself.

Quote:
Live Telephone Assistance
When calling, you may ask questions to help you prepare your tax return, or ask about a notice you have received.

Telephone Assistance for Individuals:
Toll-Free, 1-800-829-1040
Hours of Operation: Monday � Friday, 7:00 a.m. � 10:00 p.m. your local time (Alaska & Hawaii follow Pacific Time).

Telephone Assistance for Businesses:
Toll-Free, 1-800-829-4933
Hours of Operation: Monday � Friday, 7:00 a.m. � 10:00 p.m. your local time (Alaska & Hawaii follow Pacific Time).

Telephone Assistance for Exempt Organizations, Retirement Plan Administrators, and Government Entities:
Toll-Free, 1-877-829-5500
Hours of Operation: Monday � Friday, 7:00 a.m. to 5:30 p.m. Central Time.

Telephone Assistance for people with hearing impairments:
Toll-Free 1-800-829-4059 (TDD)
Hours of Operation: Monday � Friday, 7:00 a.m. � 10:00 p.m. your local time (Alaska & Hawaii follow Pacific Time).
For further information, see Tax Topic 102.

Telephone Assistance for Individuals who believe they may be a victim of Identify Theft: No Tax Administration Impact - Did not receive a notice from the IRS. Toll-Free 1-800-908-4490 (Automated and live assistance)
Hours of Operation: Monday � Friday, 8:00 a.m. � 8:00 p.m. your local time (Alaska & Hawaii follow Pacific Time). For additional information, refer to our Identity Theft and Your Tax Records page.

Telephone Assistance for people who live outside the United States
Hours of availability vary by location. Please see our International Services page.

Face-to-Face Assistance
In certain areas, IRS also has local offices you may visit to receive assistance.

http://www.irs.gov/help/article/0,,id=96730,00.html
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