January 21, 2018, 02:22:20 PM

Author Topic: paying taxes in the united states when you have an e2 visa in south korea  (Read 223 times)

Offline cruelshoes

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this may be a really dumb question, and if so, i apologize in advance; however, i thought i read somewhere that united states citizens are exempt from having to file taxes while on an e2 visa in south korea, but now i cannot seem to find anything on that or even on filing if you are on the hook for taxes. i am beginning to think i made it up. at any rate, are there any united states citizens that shed light on this for me? i am not really sure how to handle them.

Online thunderlips

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foreign earned income exemption form 2555 
https://www.irs.gov/individuals/international-taxpayers/figuring-the-foreign-earned-income-exclusion

I use a tax preparer online, it cost $20-50 but makes it so much easier.

Online dalkyr

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You're not exempt from *filing* taxes. You are, however, exempt from *paying* taxes. See the Foreign Earned Income Exemption thunderlips mentioned.

Or just use TurboTax, like everyone else. You have to actually pay to use the FEIE, but it's worth the $30.

Offline lifeisgood6447

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I don't have too much to handle except for normal income for the most part. For the past few years, I have been downloading the forms (about 10 papers) and going through them and filling them out. I then just mail them. It takes an hour or two, but it only costs the 2 bucks to send them to the IRS office.

Offline internationalteacher

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So basically then Americans pay tax twice do they? Once in Korea and then once in the USA. Why do you have to pay tax in the USA if you aren't resident there?

Online dalkyr

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So basically then Americans pay tax twice do they? Once in Korea and then once in the USA. Why do you have to pay tax in the USA if you aren't resident there?

We don't. Income earned (and taxed) in another country it's exempt. We're required to *file* our tax forms, because that's the law and we're still citizens, but we pay exactly $0 .

Offline internationalteacher

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Well what is the point of having to file your tax forms if you are just going to pay $0? It seems like a lot of paperwork and a waster of everyone's time if the end result is $0. Can't you just tell them you are abroad working and then they can put you on non resident status so they know you don't have to pay tax and then you don't have to file any paperwork. In the UK, you only file your own taxes if you are self-employed or own a company. Everything else is taxed at source and then it is up to you to claim back any overpaid tax if there is any. :laugh:

Online JNM

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The point is that very wealthy citizens cannot re-domicile someplace without income tax.

It has little impact on most people.