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Boodleheimer
Joined: 10 Mar 2006
Location: working undercover for the Man
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 Posted: Tue Aug 28, 2007 5:34 pm Post subject: Certificate of Residency, Tax Exclusion, etc. |
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okay, so it's about a month and a half into my job. my minder showed me a statement yesterday saying that if i get a certificate saying that i'm a resident of the US, i don't have to pay K-taxes. but i need that certificate before the first paycheck.
i've already gotten my first paycheck. in fact, i was paid on the 25th of July (and arrived on the 21st, so it was pro-rated). i was also paid on the 25th of this month.
so -- do i bother getting the certification? i didn't do it last year (my first year in korea). |
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ttompatz
Joined: 05 Sep 2005
Location: Kwangju, South Korea
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| Posted: Tue Aug 28, 2007 7:05 pm Post subject: Re: Certificate of Residency, Tax Exclusion, etc. |
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| KWhitehead wrote: |
okay, so it's about a month and a half into my job. my minder showed me a statement yesterday saying that if i get a certificate saying that i'm a resident of the US, i don't have to pay K-taxes. but i need that certificate before the first paycheck.
i've already gotten my first paycheck. in fact, i was paid on the 25th of July (and arrived on the 21st, so it was pro-rated). i was also paid on the 25th of this month.
so -- do i bother getting the certification? i didn't do it last year (my first year in korea). |
The form you need to file is a "form 8802", "Application for United States Residency Certification" from the IRS. It should be downloadable from their website or you can get it faxed to you.
They will send you back your certificate and then you will be exempted from paying tax in Korea for your 1st 2 years AND you will qualify for the foreign income deduction on your US taxes (I think it is the 1st $80,000 of foreign income per year is exempt from US taxes) as well as a 2 month delay in your annual filing date. |
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Boodleheimer
Joined: 10 Mar 2006
Location: working undercover for the Man
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| Posted: Tue Aug 28, 2007 7:12 pm Post subject: |
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so it doesn't matter when this certificate is filled out then? (even after the first paycheck?)
i've been living abroad for about 6 years, and my tax person in the US already filed something about me being out of the country. will this Certificate of Residency mess that up at all?
thanks!!!!!! |
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Boodleheimer
Joined: 10 Mar 2006
Location: working undercover for the Man
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| Posted: Tue Aug 28, 2007 7:13 pm Post subject: |
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| oh, and does this apply for my British boyfriend and his UK taxes? |
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ttompatz
Joined: 05 Sep 2005
Location: Kwangju, South Korea
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| Posted: Tue Aug 28, 2007 7:14 pm Post subject: |
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| KWhitehead wrote: |
so it doesn't matter when this certificate is filled out then? (even after the first paycheck?)
i've been living abroad for about 6 years, and my tax person in the US already filed something about me being out of the country. will this Certificate of Residency mess that up at all?
thanks!!!!!! |
Nope. He probably files the same thing but you need one for each year (or a single one filed for multiple years - on the back of the form) you are out of the country to take advantage of the tax breaks and penalty free filing delays. |
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