Korean Job Discussion Forums

[Evildmn]

Hey guys, I heard that Americans aren't supposed to pay income tax for the first two years... Is this true? If it is is there any way to verify it?

Also is there any number for the tax revenue office that I could call in english?

[broken76]

This is a bit confusing and can actually hurt some teachers. If you're working for a public school in Korea you can opt not to pay income tax here in Korea for up to 2 years. In return you get to pay income tax back in home. Considering the tax rate here in Korea is much much lower I recommend you simply pay your taxes here.

[Evildmn]

Really? Because I've heard that you have to pay taxes on what you make here when you get home also?

I guess it's a moot point for me as I'm a hakwon teacher anyways.

[frankly speaking]

why would you have to pay income tax in the US for an overseas job that isn't with a US company?

You do need to file taxes, but unless you make a certain amount (I don't recall what it is but something like 50kUSD) you don't have to pay taxes on overseas income.

I have always had them pay the tax in Korea I think at most I lose about 150,000 won a month. Something like 3% whereas in the US it is like 14%

[Provence]

You still have to claim it on your tax return. However, you are exempt up to $80,000. Just make sure you claim it with the right form, I don�t remember the form but if you do a search on this site I am sure you will find it.

[broken76]

Normally for taxes if you work outside of the US for the najority of the yea (I believe 330 days) you can file to be exempt from paying income tax since you are a nonresident for the year. The form that is required to avoid paying taxes in korea is telling the IRS, yes you are going to be out of the couuntry for a year but would still like to be a resident and to pay your full income tax. Your income is supposed to be taxed where you are earning it. So even for state income tax if you're earning it in a different state you pay the tax in that state and not he state that you live in. Doesn't really apply to the average person but for a pro athlete playng an away game they pay the state income tax where they played that game and not in their home state.
Same thing for the taxes on income earned in Korea. You are required to pay income tax in one country but you have the rigth to choose which country. You cannot be exempt from both countries.

[young_clinton]

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[naturegirl321]