Korean Job Discussion Forums

davester13 · Joined: 07 Nov 2005

I'm a U.S. citizen and I'm nearly finished with my first year of teaching in Korea. I want to know if I am obligated to file for income taxes for this year's work back in the U.S. Is there a minimum income level at which a person is responsible for paying taxes? Are any documents sent to government tax revenue collectors (i.e. IRS) from my school? Also, I will need to report something to the IRS for last year; I don't want to have any inexplicable breaks in my annual tax filing. What would you or what do you do in this situation?

changmee · Joined: 10 Apr 2005 Location: Yongin, South Korea

You should file form 2555EZ or 2555 depending on your situation. Foreign earned income under $80,000 is not taxed, but you should still report it. If you want to apply for a loan or anything when you get back it is one of the only ways to prove your income earned overseas. If you earned any income in the US in 2005 you will get a return for any taxes that you paid.

My brother-in-law is a CPA and he filed the above mentioned form for my husband and I last year. There is detailed information on the IRS website if you have any questions.

bluelake · Joined: 01 Dec 2005

As Changmee mentioned, you need to file a 2555, plus a 1040. To use the 2555, you have to show your Korean residency by either physical presence or bona fide residence. See http://www.irs.gov/pub/irs-pdf/f2555ez.pdf

How ever many days you were in the States during a calendar year are subtracted from 365. You then divide that number by 365, which gives you the percentage of the time you were out of the States. You multiply that percentage by $80,000; that gives you the amount of foreign income exclusionyou have.

T

politricks · Joined: 24 Jul 2005 Location: Busan

I am wondering if anyone knows what filing an income earned out side the US does for Fin. Aid eligibility? Does anyone have any experience with earning a salary from a hogwon teaching job in Korean then applying for Fin. Aid for that next year? I am worried that my chances to file as an independent and receive enough loans from US Fin. Aid to cover costs.....I know if I made 24 or 28K in a year in the US my eligibility for receiving low interest student loans would be greatly diminished. Any help would be greatly appreciated!

changmee · Joined: 10 Apr 2005 Location: Yongin, South Korea

I will complete my 2nd year of teaching in Korean next month. I applied for financial aid for winter term and didn't have any problems. In addition I got married. I don't think that the income you earn abroad will prevent you from getting low interest loans. It might prevent you from getting any grants that you may have been eligible for, but that's it.

jaykimf · Joined: 24 Apr 2004

If your total income including all your income in Korea is below a certain level you don't have to file at all. In that case any breaks in your filing would be OK. If you are over that limit you do have to file, even if all your Korean income is excluded and you end up with no taxable income at all. Also, if you ever want to sponsor a foreign spouse for U.S. immigration you will need to show your last 3 years tax forms unless you wern't required to file.
One more thing, I find it better not to exclude my Korean income but instead report it as taxable income. Instead of owing zero taxes I actually get a refund thanks to the additional child tax credit. I've gotten back about $900 dollars in the last 2 years even though I never paid in anything. Also I can make contributions to my IRA, which I wouldn't be able to do if my Korean income was excluded and I had no earned income.

Wangja · Joined: 17 May 2004 Location: Seoul, Yongsan

Financial Aid in USA????

politricks · Joined: 24 Jul 2005 Location: Busan

Maybe I should of put the header "And now for something completly different"....but I think a US Finantial aid question via US tax filing question meets the proper logic requirements for posting on a daves thread????

cruisemonkey · Posted: Fri Dec 16, 2005 9:20 am Post subject:

Pay your taxes and send the boys ans girls to the Iraq to search for weapons of mass destruction.

politricks · Joined: 24 Jul 2005 Location: Busan

and now for something completley different

n3ptne · Joined: 14 Sep 2005 Location: Poh*A*ng City

File taxes? Never done that.. dont plan on going back.

Hater Depot · Joined: 29 Mar 2005

I have my accountant handle all of that. It's not for a gentleman to be involved in such base matters.

napoleon8 · Joined: 18 May 2003

Does anyone know what the specific penalties are for not filing? Do you know of any official IRS publications or documents to support your response?