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  • melanie0989
  • Adventurer

    • 68

    • September 19, 2012, 02:13:22 am
    • Mungyeong City
Re: Questions and Answers for American Taxes
« Reply #280 on: January 28, 2013, 10:29:18 am »
Also would we actually be considered "bona fide residents" I'm having a hard time being able to tell if we do based on the IRS language for the 2555 form instructions. I don't pass the physical presence requirement for 2012 since I did not get here until the end of September but I'm not sure how else to document my foreign earned income for the IRS if I can't technically use the 2555 form...


  • brandyg3
  • Explorer

    • 7

    • May 15, 2012, 11:10:02 am
    • South Korea
Re: Questions and Answers for American Taxes
« Reply #281 on: January 30, 2013, 08:34:37 pm »
okay here's my situation. i worked in hagwons for two years in korea, and then switched over to the public schools. i have never filed for the 8802 form.
am i eligible for the tax exempt status, since i am now working for epik?  or am i not exempt, as I have already been in korea for two years? as it is, i've been telling my school to go ahead and deduct the taxes. i find this all extremely confusing and headache inducing  :sad:


  • newb
  • Newgookin

    • 0

    • November 20, 2012, 10:38:27 am
    • South Korea
Re: Questions and Answers for American Taxes
« Reply #282 on: January 30, 2013, 08:37:18 pm »
okay here's my situation. i worked in hagwons for two years in korea, and then switched over to the public schools. i have never filed for the 8802 form.
am i eligible for the tax exempt status, since i am now working for epik?  or am i not exempt, as I have already been in korea for two years? as it is, i've been telling my school to go ahead and deduct the taxes. i find this all extremely confusing and headache inducing  :sad:

Not.
HEY CAN YOU FILL THE OIL AND CHECK THE GAS PLEASE!!!!


  • brandyg3
  • Explorer

    • 7

    • May 15, 2012, 11:10:02 am
    • South Korea
Re: Questions and Answers for American Taxes
« Reply #283 on: February 04, 2013, 01:02:28 pm »
okay here's my situation. i worked in hagwons for two years in korea, and then switched over to the public schools. i have never filed for the 8802 form.
am i eligible for the tax exempt status, since i am now working for epik?  or am i not exempt, as I have already been in korea for two years? as it is, i've been telling my school to go ahead and deduct the taxes. i find this all extremely confusing and headache inducing  :sad:

Not.


So, after trying to explain the issue to my school, they called the tax office and the tax office says they are a-okay with me turning in the 8802 form, even though I've been in Korea for two years.  At least according to the translated conversation between my co and the administration office, where I repeatedly asked about the fact that I had been here two years in korea, and that I was worried about going to jail/ getting a huge bill/getting kicked out of the country. Anyone else in this situation before?


  • bts21
  • Adventurer

    • 73

    • September 04, 2012, 10:15:28 am
    • Gyeongbuk
Re: Questions and Answers for American Taxes
« Reply #284 on: February 04, 2013, 02:55:52 pm »
okay here's my situation. i worked in hagwons for two years in korea, and then switched over to the public schools. i have never filed for the 8802 form.
am i eligible for the tax exempt status, since i am now working for epik?  or am i not exempt, as I have already been in korea for two years? as it is, i've been telling my school to go ahead and deduct the taxes. i find this all extremely confusing and headache inducing  :sad:

Not.


So, after trying to explain the issue to my school, they called the tax office and the tax office says they are a-okay with me turning in the 8802 form, even though I've been in Korea for two years.  At least according to the translated conversation between my co and the administration office, where I repeatedly asked about the fact that I had been here two years in korea, and that I was worried about going to jail/ getting a huge bill/getting kicked out of the country. Anyone else in this situation before?

You're fine. AFAIK you can get tax exempt status with US citizenship for up to two years, but when you take those two years is up to you. A lot of schools will say you have to file the form within your first month/first x amount of time employed, though.


  • heatvn
  • Newgookin

    • 4

    • February 05, 2013, 08:49:21 am
    • Asia
Re: Questions and Answers for American Taxes
« Reply #285 on: February 05, 2013, 08:50:42 am »
That's a lot of information

Who's eligible for Korean tax exemption?

To be exempt from paying Korean taxes, you need to employed by the government (e.g., public school teachers). Thus, private-sector workers (e.g., hagwon teachers) must still pay Korean taxes. However,  private-sector employees CAN still be exempt from paying AMERICAN taxes (more details further down).

Remember the Korean tax exemption isn't forever--it lasts TWO YEARS.

 How to apply for Korean tax exemption?

In order to be exempt from paying Korean taxes (for two years), you need to give your school the 6166 form.  However, you must first fill out the 8802 form in order to get the 6166. Please be aware that the 8802 is NOT the residency certificate, it is the application for the residency certificate (6166).
 
Here are the steps.


1. I had to purchase the number of 6166 copies I wanted to have PRIOR to sending the 8802 to the IRS.

Here is the link for payment https://www.pay.gov/paygov/forms/formInstance.html?agencyFormId=12164322.

You'll have to go on to the website, purchase the copies, and you'll receive a confirmation number. You can get up to 20 copies for $35. I'd say to shoot for at least 5-6 just in case your school needs extras. If you want to be really safe order all 20!


2. Fill out the 8802. I've attached it and the instructions below. Make sure to put that confirmation # on the 8802 form before sending it (I promise this will make more sense once you get down to paying for and filling out the forms). If you are having the form mailed to someone besides yourself (which is probably the case since many of you are already here in Korea),  you'll have to name an appointee.


3. After filling out the 8802 form, you can fax or mail it to the IRS. Make sure that you mail the form to the correct place. If you pay for the 6166 via the link that I've given above, then you'll have to send it to one address. If you pay by check, the address is different. Just so you know, I faxed mine and it was kind of a huge deal because they have two different fax numbers, so I had to send it twice. My point is, call if you are unsure! 

4. After the IRS gets your 8802, they'll send a letter telling you that they've received it and are processing your 6166. They will send it to a US address only, so send it to a family or friend. The letter will say that they'll respond to you within 30 days, but that's a lie. I had to call a few times. It took THREE MONTHS to get my 6166 and that was only after calling.  It'll take time, but it should work out.



How long does it take to get 6166?

The IRS claims they will contact you within 30 days after processing form 8802, but that doesn't generally happen. It would be prudent to call the IRS to remind them; people typically wait three to five months, sometimes LONGER.  Constantly remind the IRS about it.

But what if I've already started paying Korean taxes, will I get my money back once my school gets 6166?

Yes. If not, contact the tax office directly.  Please be aware that the refund won't  get handed back to you in cash--it will most likely come in the form of a tax credit at the end of the financial year.


Do I have to pay US taxes?

Unlikely. If your contract is one year, you become a "bona fide resident" of Korea the day your contract commences and hence qualify for the exclusion. However, there is one exception to this rule: if you make more than $92,900 USD (2011 figure), but since EFL teachers in Korea typically don't make that much, you probably don't have to worry. Also, if your contract is less than a year (e.g., six months), then you don't qualify for avoiding US taxes. However, you can still apply for Korean tax exemption.

Is the foreign income tax exclusion automatic? Do I still have to file my tax return with the IRS every year in Korea?,

The exclusion is not automatic as you must submit form 2555 along with form 1004 (NOT 1004A or 1004EZ).  You can request your school to give you a document showing your yearly earnings around tax time (late Jan.) as the IRS may require proof of foreign income.   Say/write to your school's administration office:


"원어민교사 급여지급내역"

This means "Foreign teacher's salary payments".

If your school refuses to give it to you, showing your bankbook (or a printout of your deposits via online banking) should suffice.  You should convert your salary to USD for each month; one member used the Bank of CANADA's web site (yes, Canada) because it conveniently lists montly historical exchange rates. The IRS will likely take your word for it as they're aware the overwhelming majority of EFL teachers don't make  close to the foreign income exclusion threshold.

Submitting 2555  with 1040 obviously means you're filing your tax return. But, you don't have to do it every year; you can file three years later . For example, a 2011 return can be filed in 2014 without applying for an extension.

Form 2555 or 2555-EZ?

If you're exempt from paying Korean taxes, you must submit the 2555, NOT 2555EZ.

So, what's the diff between form 1040, 2555, 8802, and 6166?


Form 8802 is the application to get 6166, the latter is what you need to submit to your school to avoid KOREAN taxes. So, 8802/6166 is so you avoid paying KOREAN TAXES.

Form 1004 is the income tax return filing document.

Form 2555 (which you must submit when you file your US tax return using form 1004) is so you don't have to pay AMERICAN taxes.


Re: Questions and Answers for American Taxes
« Reply #286 on: February 18, 2013, 08:22:40 am »
So I am confused on what part makes us a bonafide resident.  Where on the form does a first timer declare this?

13A should be yes as we file the 6166 form, and 13b should be no as we (at least I am) are not required to pay income tax, only pension and medical.  But saying Yes, No does not qualify us as bona fide residents.


Is 1/2 the pension refund considered income?
« Reply #287 on: February 18, 2013, 11:19:08 am »
ok, so I worked all of 2011 and part of 2012. epik. Jan 2012 i went to usa ended contract. I got my pension refund in jan 2012. Now.....is the 1/2 of the pension considered income for 2012? because it was money the school matched? or are pensions not considered income? anyone know this? and since i actually got the funds in 2012 it would be 2012 income yeah?


  • jenbo79
  • Waygookin

    • 15

    • October 23, 2011, 07:58:57 pm
    • South Korea
Re: Questions and Answers for American Taxes
« Reply #288 on: February 26, 2013, 08:49:04 am »
My school just taxed me 600,000 won and I've only been here a little bit over a year.  I'm filing the 8802 to get the form 6166.  My school is saying that it doesn't matter because I didn't provide with the form earlier, I'm not to get a refund.  Should I call the tax office and do they speak English?


Re: Questions and Answers for American Taxes
« Reply #289 on: February 26, 2013, 12:47:13 pm »
I'm rather confused about this whole thing...

Okay, so my situation is that I've worked at a Hagwon from August 2011 through February 2012.  I filed my US taxes that year through my  parent's accountant and I only went through and claimed the income I made in the states that year.  From March 2012 until now I've been working at a public school.  So, I'm exempt from paying Korean taxes and my school hasn't said or done anything regarding my taxes with that, as to my knowledge it's automatic.

So, would I just fill out the regular tax form (1040) and the 2555 (Foreign Income Earned)?  Do I even need to be concerned about the other two forms (8802 and 6166)?
« Last Edit: February 26, 2013, 12:54:24 pm by jenilyn8705 »


  • tbaren
  • Adventurer

    • 31

    • April 29, 2012, 08:21:52 pm
    • Bucheon
Re: Questions and Answers for American Taxes
« Reply #290 on: February 28, 2013, 11:34:42 am »
So I am confused on what part makes us a bonafide resident.  Where on the form does a first timer declare this?

13A should be yes as we file the 6166 form, and 13b should be no as we (at least I am) are not required to pay income tax, only pension and medical.  But saying Yes, No does not qualify us as bona fide residents.

This, please. I'm confused, too. Are those of us that are exempt from the first two years bona fide residents or not?


Re: Questions and Answers for American Taxes
« Reply #291 on: February 28, 2013, 12:11:15 pm »
I think who ever said "bona fide" resident in the first page sticky used that term without knowing it's in the tax forms.  My impression is that simply because we are earning foreign currency (Korea) and are still American citizens, we will not be taxed as long as it doesn't reach that $90,000+ amount. 

In addition, we will not be taxed in Korea BECAUSE of the 6166 form. 

I will try to confirm this for the future people once I receive my taxes back.


  • alexc2000
  • Veteran

    • 233

    • October 13, 2012, 10:20:21 pm
    • Gwangju, South Korea
    more
Re: Questions and Answers for American Taxes
« Reply #292 on: March 02, 2013, 09:57:49 pm »
In the past, I was filed as a dependent with my parents. Last year, I was no longer able to be filed as a dependent. Though I still didn't file since I didn't make much money.

I'm not sure if I can apply for Form 6166.

I should also mention that I am with the TaLK Program. We make less money than EPIK teachers do. Anyway, I plan on staying in Korea for a long time. Would I be better off applying for this form when I get an English teaching job that pays more than the TaLK Program does? I am asking because this benefit is only for two years.


Re: Questions and Answers for American Taxes
« Reply #293 on: March 05, 2013, 05:59:49 am »
How are we supposed to go about translating Korean for taxes? Scribbling notes in the margins seems unprofessional...


  • KimchEli
  • Adventurer

    • 46

    • August 29, 2011, 10:58:59 am
    • Bonghwa
Re: Questions and Answers for American Taxes
« Reply #294 on: March 06, 2013, 08:06:33 am »
i've been working in a public high school for a year and a half, and will be here for 6 more months, completing my second contract. then i'll head back to the states.

my main co-teacher told me last night at dinner that she needs my residency certificate before friday (today is wednesday) if i don't want to have to pay taxes. i did all this when i first came, and had heard nothing about having to do it again until last night.

is this something that needs to be done every year? or can i just find a copy of the document i gave the school when i first came? from looking on this thread, there is no possible way i can get a new one in two days. just wondering if there is anyway avoiding dealing with the IRS while i'm still here?

also, if i do in fact have to do this again, and need to try and get refunded later for paying korean taxes, i read something about getting the refund in the form of a tax credit. what is this? i'm leaving korea at the end of august and want to be sure that if i go through all this b.s. with the IRS that it will actually be worth it and i'll get refunded.

any kind of advice/knowledge about my situation would be GREATLY appreciated.

thanks!


  • popeye2u
  • Expert Waygook

    • 877

    • April 05, 2011, 09:45:37 am
    • S of N. Korea
Re: Questions and Answers for American Taxes
« Reply #295 on: March 07, 2013, 09:33:14 am »
Why americans fall for the IRS fear and the crappy BS to not pay little in Korean taxes is beyond me.  The US has no idea what you make so why tell them?  Once you make over 97,000 then its a different story.  Dont stress over beauracratic messes.
Illegally Screwed By Employers in Korea:  https://www.facebook.com/groups/1628928127347749/


  • Hoosier_Jedi
  • Expert Waygook

    • 859

    • April 08, 2011, 01:56:38 pm
    • Icheon
    more
Re: Questions and Answers for American Taxes
« Reply #296 on: March 08, 2013, 12:19:16 pm »
Why americans fall for the IRS fear and the crappy BS to not pay little in Korean taxes is beyond me.  The US has no idea what you make so why tell them?  Once you make over 97,000 then its a different story.  Dont stress over beauracratic messes.

I screwed up my tax forms TWICE while I was living in Japan. The IRS didn't eat me alive. They just had me take another crack at it until I got it right. Yeah, it's a hassle. But it's one you can knock out in an evening and then you don't have worry about it again for a year. So just relax, read slowly and carefully, have plenty of copies and if you live in one of the big cities hire an accountant to do it for you.


Re: Questions and Answers for American Taxes
« Reply #297 on: March 08, 2013, 12:42:24 pm »
In the past, I was filed as a dependent with my parents. Last year, I was no longer able to be filed as a dependent. Though I still didn't file since I didn't make much money.

I'm not sure if I can apply for Form 6166.

I should also mention that I am with the TaLK Program. We make less money than EPIK teachers do. Anyway, I plan on staying in Korea for a long time. Would I be better off applying for this form when I get an English teaching job that pays more than the TaLK Program does? I am asking because this benefit is only for two years.

This may help you and others understand things more. There are links to the IRS forms at the bottom of the site to help you if needed. Good luck!


  • crod11
  • Waygookin

    • 11

    • March 19, 2012, 11:46:47 am
    • Hong Seong, Chungnam, South Korea
Re: Korean Tax Reimbursement for Americans
« Reply #298 on: March 08, 2013, 02:23:17 pm »
Just get the form ASAP.  It takes about a month and costs $45, but once you get the form(after filing U.S. taxes), then the school can no longer collect tax money from you.  It's based on a U.S./Korea treaty, so it's federal law, and is good for two years.

@KimchiEli, I'm in the same boat as yourself. I started my first contract March 1, 2012.

I already submitted a US Residency form for 2012 when I arrived and paid no taxes. I've just renewed my contract and am starting a 2nd year (2013). Need to know if I need to request a new US Residency Certification (specifically for 2013--or is the 2012 form good for both 2012/2013)?

This seems to hint that one form may be used for two years!?????? HEEEEEEELP! :D

*Update: On page 14 someone stated that you need to file a new Residency form every year but that statement wasn't verified. I went through every message on this thread and this is the best I can do, if I find a definitive answer I'll let you know.
« Last Edit: March 08, 2013, 02:54:09 pm by crod11 »


  • crod11
  • Waygookin

    • 11

    • March 19, 2012, 11:46:47 am
    • Hong Seong, Chungnam, South Korea
Re: Questions and Answers for American Taxes
« Reply #299 on: March 11, 2013, 08:57:56 pm »
@KimchiEli,

After calling, e-mailing and researching forums and Korean tax offices, I finally e-mailed my recruiter who's been in Korea for 10-15 years. 1 tax residency form for US citizens is good for 2 years!

Praise Zeus' beard, cause I didn't want to pay the astronomical $85 fee or have to wait for the IRS to maybe get around to sending me another form.

*Make sure you keep a copy though, one of my friend's said her school lost the residency form.