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Korean Job Discussion Forums
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OiGirl
Joined: 23 Jan 2003
Location: Hoke-y-gun
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 Posted: Thu Feb 11, 2010 7:54 pm Post subject: |
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| Konglishman wrote: |
| Konglishman wrote: |
| OiGirl wrote: |
| Konglishman wrote: |
| OiGirl wrote: |
Question:
If we are a married couple, both with income only in Korea, reported on Form 2555, is it best to file jointly or separately? I just got married last year. |
That is an excellent question, OiGirl. In fact, you seem to have tripped me up. Perhaps, I will give the IRS a call on Monday to find out.
By the way, based on something I vaguely recall reading, I suspect that it will make some sort of difference depending on whether your spouse is an American or not. |
My spouse is a Permanent Resident in the US now. |
Unfortunately, I have had a lot of last minute errands to take care of before flying back to Korea. So, I have not yet had a chance to call the IRS and ask them about this. However, I should have time now tomorrow. |
OiGirl,
I just spoke with the IRS. Generally speaking, it is most beneficial to file jointly. Also, it turns out that if you file jointly then your Foreign Income Exclusion is doubled. In fact, on page 19 of Publication 54, you will find the following.
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| If both you and your spouse work abroad and each of you meets either the bona fide residence test or the physical presence test, you can each choose the foreign earned income exclusion. You do not both need to meet the same test. Together, you and your spouse can exclude as much as $182,800. |
http://www.irs.gov/pub/irs-pdf/p54.pdf |
Thank you very much! That's the direction I was leaning in. |
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Bobdole
Joined: 01 Jul 2009
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| Posted: Tue Feb 16, 2010 11:03 am Post subject: |
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So, what happens if you know you will not make the 330 day requirement?
This is what form 2555EZ has to say under test 3:
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Tax Home Test.
Was your tax home in a foreign country or countries throughout your period of bona fide residence or physical presence, whichever applies? Yes/No
If you answered �Yes,� you can take the exclusion. Complete Part II below and then go to page 2.
If you answered �No,� you cannot take the exclusion. Do not file this form. |
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MiniMoonks
Joined: 30 Oct 2007
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| Posted: Wed Feb 17, 2010 9:40 pm Post subject: |
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| naturegirl321 wrote: |
| Konglishman wrote: |
| Konglishman wrote: |
| OiGirl wrote: |
| Konglishman wrote: |
| OiGirl wrote: |
Question:
If we are a married couple, both with income only in Korea, reported on Form 2555, is it best to file jointly or separately? I just got married last year. |
That is an excellent question, OiGirl. In fact, you seem to have tripped me up. Perhaps, I will give the IRS a call on Monday to find out.
By the way, based on something I vaguely recall reading, I suspect that it will make some sort of difference depending on whether your spouse is an American or not. |
My spouse is a Permanent Resident in the US now. |
Unfortunately, I have had a lot of last minute errands to take care of before flying back to Korea. So, I have not yet had a chance to call the IRS and ask them about this. However, I should have time now tomorrow. |
OiGirl,
I just spoke with the IRS. Generally speaking, it is most beneficial to file jointly. Also, it turns out that if you file jointly then your Foreign Income Exclusion is doubled. In fact, on page 19 of Publication 54, you will find the following.
| Quote: |
| If both you and your spouse work abroad and each of you meets either the bona fide residence test or the physical presence test, you can each choose the foreign earned income exclusion. You do not both need to meet the same test. Together, you and your spouse can exclude as much as $182,800. |
http://www.irs.gov/pub/irs-pdf/p54.pdf |
I elect NOT to file jointly simply because it's non of their business how much my husband makes. He's not a US citizen or resident and doesn't have to file. Also, I tried to get him an ITIN number twice. First time they sent back the passport, but no number, second time, they lost the docs and said we hadnt' sent any.
By filing separately, half the money we get jointly, like renting or interest, I simply don't have to declare since that's his half. |
Thanks everyone! I recently got married last year here in Korea (I'm a U.S. citizen and my wife is a Korean citizen and we're about to file for her permanent residency for the U.S.)
I was about to file a joint tax return, but my wife is a Korean citizen and has not yet received her permanent residency, so why file a joint return if her income and residency is here in Korea. |
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PatrickBateman
Joined: 08 Jun 2009
Location: American Gardens Building, West 81st Street
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| Posted: Thu Feb 18, 2010 9:25 am Post subject: |
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Question...
So do I automatically get an extension to qualify for the 330 day exemption, or do I have to print something out and send it in? From what I've heard, people around my campus aren't even going to claim the money they've made here. Isn't that a bit risky?
I read a few pages back and someone mentioned it was an automatic extension?
Please elaborate if you will, thanks! |
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Ltisme
Joined: 21 Sep 2009
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| Posted: Tue Feb 23, 2010 6:58 pm Post subject: |
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I've got a clarifying question if someone can help.
I arrived in Korea in September 2009 after working in California the previous year. I will be leaving Korea in September 2010. I could file my 2009 taxes now, but if I did, as far as I understand what I've read here, I wouldn't pass the physical presence test, and would then have to pay US taxes on my Korean income.
I think my best option would be to file for an extension, so that I can file my taxes once I have been in Korea long enough to pass the physical presence test.
Does that sound about right?
thanks |
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naturegirl321
Joined: 18 Jul 2006
Location: Home sweet home
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| Posted: Tue Feb 23, 2010 11:03 pm Post subject: |
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Pretty sure it's an automatic extension.
About the Sept 09 to Sept 10, the PUb 54 has examples about that. I honlesty woulnd't want to tell you anything, becuase I don't understand it either.
BUT , I think, you just write on the top, which tax year you are filing for, so just write Sept 09 to Sept 10, or something like that. DOn't take my word for it, read the Pub 54. |
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Milwaukiedave
Joined: 02 Oct 2004
Location: Goseong
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| Posted: Wed Feb 24, 2010 4:40 am Post subject: |
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| Just a note, since I had the same address as last year, I got a nice big thick book in the mail from the IRS. This is the first time they've done this (usually you have to get everything online or at the Embassy). It has all the forms in it. |
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DoubleRS
Joined: 13 Oct 2008
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| Posted: Mon Mar 01, 2010 6:38 am Post subject: Do I need the Certificate of Residency Again? |
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Before I came to Korea (Nov 2008), I got my Certificate of Residency and gave it to my public school...no problems. I filed my 2008 taxes without a problem.
Now I'm filing for my 2009 tax year and I'm curious if I need the residency certificate again?
Does it residency certificate last indefinitely? Or for a year?
I pass the presence test for 2009 so I should file the 1040 and the 2555 right? assuming that my certificate of residency is still valid. |
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Konglishman
Joined: 14 Sep 2007
Location: Nanjing
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| Posted: Tue Mar 02, 2010 12:04 am Post subject: Re: Do I need the Certificate of Residency Again? |
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| DoubleRS wrote: |
Before I came to Korea (Nov 2008), I got my Certificate of Residency and gave it to my public school...no problems. I filed my 2008 taxes without a problem.
Now I'm filing for my 2009 tax year and I'm curious if I need the residency certificate again?
Does it residency certificate last indefinitely? Or for a year?
I pass the presence test for 2009 so I should file the 1040 and the 2555 right? assuming that my certificate of residency is still valid. |
The Korean tax exemption is good for 2 years. To the best of my knowledge, you are only supposed to provide 1 Certificate of Residency in order to get the 2 year exemption.
Having a residency certificate, in and of itself, has no effect on how you file your taxes. So, unless you worked in the US in 2009, you should just file the 2555. |
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amberflannery
Joined: 25 Oct 2006
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| Posted: Tue Mar 02, 2010 4:19 am Post subject: |
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| this is a very long thread. did anyone mention anything about how i get a refund for the korean taxes i am paying? i am not exempt and have been paying them. for almost 3 years. and never gotten a refund. |
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s.mackesey
Joined: 21 Jan 2010
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| Posted: Tue Mar 02, 2010 4:12 pm Post subject: |
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| Ltisme wrote: |
I've got a clarifying question if someone can help.
I arrived in Korea in September 2009 after working in California the previous year. I will be leaving Korea in September 2010. I could file my 2009 taxes now, but if I did, as far as I understand what I've read here, I wouldn't pass the physical presence test, and would then have to pay US taxes on my Korean income.
I think my best option would be to file for an extension, so that I can file my taxes once I have been in Korea long enough to pass the physical presence test.
Does that sound about right?
thanks |
While you do receive an automatic two month extension since you are living abroad, that won't be enough for you to pass the physical presence test.
If you check the instruction sheet for the 2005EZ, it discusses this:
www.irs.gov/pub/irs-pdf/i2555ez.pdf
Under the "When to File" section on pg 1-2, they mention your situation. You have two options; to file for a 'special extension' (in addition to your automatic two months), or to submit a normal return and then file an amendment to it after you qualify.
Hope that helps. |
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DoubleRS
Joined: 13 Oct 2008
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| Posted: Tue Mar 02, 2010 4:58 pm Post subject: Re: Do I need the Certificate of Residency Again? |
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| Konglishman wrote: |
| DoubleRS wrote: |
Before I came to Korea (Nov 2008), I got my Certificate of Residency and gave it to my public school...no problems. I filed my 2008 taxes without a problem.
Now I'm filing for my 2009 tax year and I'm curious if I need the residency certificate again?
Does it residency certificate last indefinitely? Or for a year?
I pass the presence test for 2009 so I should file the 1040 and the 2555 right? assuming that my certificate of residency is still valid. |
The Korean tax exemption is good for 2 years. To the best of my knowledge, you are only supposed to provide 1 Certificate of Residency in order to get the 2 year exemption.
Having a residency certificate, in and of itself, has no effect on how you file your taxes. So, unless you worked in the US in 2009, you should just file the 2555. |
Thank you so much for the info. So I will file the 1040 and attach the 2555. I will hopefully not get taxed in either country!  |
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Konglishman
Joined: 14 Sep 2007
Location: Nanjing
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| Posted: Tue Mar 02, 2010 5:38 pm Post subject: Re: Do I need the Certificate of Residency Again? |
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| DoubleRS wrote: |
| Konglishman wrote: |
| DoubleRS wrote: |
Before I came to Korea (Nov 2008), I got my Certificate of Residency and gave it to my public school...no problems. I filed my 2008 taxes without a problem.
Now I'm filing for my 2009 tax year and I'm curious if I need the residency certificate again?
Does it residency certificate last indefinitely? Or for a year?
I pass the presence test for 2009 so I should file the 1040 and the 2555 right? assuming that my certificate of residency is still valid. |
The Korean tax exemption is good for 2 years. To the best of my knowledge, you are only supposed to provide 1 Certificate of Residency in order to get the 2 year exemption.
Having a residency certificate, in and of itself, has no effect on how you file your taxes. So, unless you worked in the US in 2009, you should just file the 2555. |
Thank you so much for the info. So I will file the 1040 and attach the 2555. I will hopefully not get taxed in either country! |
So, I take it that you worked in the US for part of last year? |
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amberflannery
Joined: 25 Oct 2006
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| Posted: Wed Mar 03, 2010 2:07 am Post subject: |
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i only worked here in korea last year. i was going to fill out the 1040 and the 2555. thats wrong?   |
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Konglishman
Joined: 14 Sep 2007
Location: Nanjing
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| Posted: Wed Mar 03, 2010 2:50 am Post subject: |
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| amberflannery wrote: |
| i only worked here in korea last year. i was going to fill out the 1040 and the 2555. thats wrong? |
Well, keep in mind that I am not a tax expert. Anyways, it is only the 2555 that is relevant for foreign income. So, unless you worked in the US for part of last year or have some other type of income derived from the US, I do not see why you would be filling out the 1040. |
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