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Good Will Riker
Joined: 25 Dec 2009
Location: South Korea
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 Posted: Wed Aug 26, 2015 11:55 pm Post subject: Reporting your US taxes: Gross or Net? |
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| When filing your US taxes with the IRS here in Korea, do you report it minus the income tax and residence tax, or do you report "THE ENTIRE GROSS" before the Korean tax deductions? |
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pjstarbuck
Joined: 05 Mar 2012
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| Posted: Thu Aug 27, 2015 1:45 am Post subject: |
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| Report the gross, before-tax wage. Anything under $95,000 is exempt from USA taxes anyway, so don't worry about getting dinged for a tax bill. |
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Fallacy
Joined: 29 Jun 2015
Location: ex-ROK
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| Posted: Thu Aug 27, 2015 2:28 am Post subject: |
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| pjstarbuck wrote: |
| Anything under $95,000 is exempt from USA taxes anyway, so don't worry about getting dinged for a tax bill. |
Not exactly. For the most recent tax year (2014), the maximum exclusion was increased to $99,200 USD. Also, note that the income is "excluded" rather than "exempted." You will have to file form 2555 "Foreign Earned Income" and declare your tax home to be somewhere other than in the USA, such as the ROK. Alternatively, Part II of that form makes a determination for "Taxpayers Qualifying Under Bona Fide Residence Test" and Part III for "Taxpayers Qualifying Under Physical Presence Test" if you declare your tax home to be in the USA, but you are abroad for the entire calendar tax year, or at a minimum you are away from the USA for 330 days. |
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isitts
Joined: 25 Dec 2008
Location: Korea
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| Posted: Fri Aug 28, 2015 3:29 am Post subject: |
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| Fallacy wrote: |
| pjstarbuck wrote: |
| Anything under $95,000 is exempt from USA taxes anyway, so don't worry about getting dinged for a tax bill. |
Not exactly. For the most recent tax year (2014), the maximum exclusion was increased to $99,200 USD. |
All the more reason not to be concerned if it's gross or net.  |
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isitts
Joined: 25 Dec 2008
Location: Korea
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| Posted: Fri Aug 28, 2015 3:40 am Post subject: |
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| Fallacy wrote: |
| You will have to file form 2555 "Foreign Earned Income"... |
There's already a sticky on all that.  |
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Fallacy
Joined: 29 Jun 2015
Location: ex-ROK
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| Posted: Fri Aug 28, 2015 4:29 am Post subject: |
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| True. This thread should not have been started. Does anyone read the stickies first? MODS please lock. OP: I reposted to the proper thread. Done. |
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