Korean Job Discussion Forums

[lodestoned]

I heard from a friend and I saw a previous post on Dave's to the effect that Americans can somehow get their taxes refunded. The post mentioned dates but I wasn't clear. I have been here since July 22 2006 and will leave July 25 2007. Can I take advantage of this? A little extra cash would be great traveling..... Please help if you know anything.

[Bibbitybop]

You first sent in form 8820 available on the IRS website, then give the copy of the letter returned to you to your school. When you file taxes, you should really get a tax agent's help, use software like turbo tax or work with someone experienced. As long as you live out of the US for 330 days, I think, you are exempt from paying taxes for income up to 85,000 USD. This applies for your first 2 years abroad.

[peacemaker]

Americans and Canadians, their first two years in Korea, are exempt from paying Korean income taxes (ask your school, they should know what you have to do).

As far as I know, for Americans, income earned outside the US is non-taxable for as long as you are eligible for the foreign income exclusion. I don't think there is a two year limit on that. The foreign income exclusion is fairly confusing to explain. Check out www.irs.gov and search for "foreign income exclusion" or do a search on these boards as some other people have explained it fairly well in other threads.

Basically, all I had to do in April was fill out a form (not sure about the number) requesting a six-month filing extension so that I could qualify for the 330-day physical prensence test (I am in Korea from Sept. 2006-Sept. 2007).

Again, this is missing a lot of the relevant details, so check out the IRS website.

[Snowkr]

I had to pay in BIG TIME... not for U.S. income tax but for U.S. Social security. I paid over $3,000 USD for my one year of work in Korea.
I was told this was because I didn't pay into Korea's soc. security (aka pension, I believe).

Whatever you do, make sure you have a pension plan. I got no money back for taxes and basically paid my government to work in Korea.

[Bibbitybop]

[tob55]

If you want to find out some of the specifics related to taxes and other issues, go to the link below for appropriate links to find what you are looking for...

http://forum.koredinco.com/viewtopic.php?t=7

I think this will give you a good starting point...

[dogshed]

[dogshed]

The tax break that allows you to not pay Korean taxes for two years is part of the EPIK contract. I'm not sure if other public school teachers can get it or not. It states in the EPIK contract that it is available to any nationality except Canadian. However, if you don't qualify for this tax break you may be able to get pack almost all of your taxes paid in your regular Korean tax return. I saw this in a post but don't any details.

The following thread explains the tax exclusion in more detail. Remember you can file an amended return if you didn't get the break you deserve.
Some people can do their own taxes and some can't. If you use a preparer you can print out this thread to show to them and help you decide if they are a good preparer or a bad preparer.

http://forums.eslcafe.com/korea/viewtopic.php?t=87567&highlight=tax+exclusion

[Colorado]

[prettyinscarlet777]

When do you file a Korean tax return? How do you do it? thanx

[luvnpeas]

I don't think it's an EPIK thing. I think it has to do with agreements between the countries. That's why Canadians are excluded: it's not because EPIK arbitrarily hates Canadians, but because the countries don't have an agreement.

The IRS can be pretty damn stupid. I just got their response from my form: they said I need to send them a statement stating I am US resident for tax purposes. 1) Isn't that what their form, which I signed, says? 2) How would I find out if I am US resident for tax purposes, other than by asking....the IRS?

[moosehead]

this would make a good sticky - i just learned of it after my first 1 1/2 yrs in korea and as a result was only excempt for 6 months - was sweet, tho, not having to pay taxes those 6 months

then i left korea for a few months - came back - so my question is - is this like a ONE - TIME exemption - the 2 years? as in forever - i was away for several months and came back - my school is taking taxes out but i haven't asked about the exemption

fyi, the exemption is with several countries, it has to do with some kind of agreement between each country and korea; i know the u.s. has it and several other countries but i can't elaborate on the other ones

it has to do with where in korea you work - only in regards to teaching - if you were "brought over to teach" - tho it might make a difference if it's public vs. private education -


moosehead

[gyopogirlfromtexas]