Read 196061 times

  • gchan19
  • Adventurer

    • 49

    • March 04, 2013, 08:28:10 am
    • Paju
Re: American Tax Question
« Reply #320 on: March 28, 2013, 12:25:12 pm »
I am sorry, this might be a stupid question, but what happens if I don't file my taxes? I am a recent college graduate and I never filed taxes before. And this is the first time, but I am in a foreign country, so how does this work?


  • country09
  • Expert Waygook

    • 653

    • January 05, 2011, 10:04:21 am
Re: American Tax Question
« Reply #321 on: March 28, 2013, 01:05:56 pm »
I am sorry, this might be a stupid question, but what happens if I don't file my taxes? I am a recent college graduate and I never filed taxes before. And this is the first time, but I am in a foreign country, so how does this work?

You will have to file each year regardless if you earned income in the states or not

There are two forms that for most of us we will all need to file. They are 1040ez(always) and the 2555ez(depending on your stay in Korea this year. This form has requirments that have to be met in order for it to be filed but they are written in on the form so just follow it.) Go to www.irs.gov or do a quick search in google with those key words and you will find the pdf files. Also you can add the word instructions at the end of those key words and get instructions on how to fill out each part of the form. For the most part it is very simple and easy.

Some people like to file online. I tried to file but I wound up being asked to pay additional money for the service so I just choose to do the paper. I also like the paper because I can better understand what is going on when filing by reading the instructions.

And last piece of advice. Call the IRS. Find some time to call and they can help answer.


  • LindseyN
  • Adventurer

    • 40

    • October 23, 2011, 09:42:40 am
    • Seongnam, South Korea
Re: American Tax Question
« Reply #322 on: March 28, 2013, 01:13:35 pm »
It sounds like people are asking the same questions over and over. The best place to find answers about tax information in the States for people who make foreign income is the IRS website-

www.irs.gov/Individuals/International-Taxpayers/Foreign-Earned-Income-Exclusion

This page will answer many questions that people are asking without relying on what someone else experienced as the rule for taxes. If something is still unclear, call them and find out the answer. I have heard of people waiting to file taxes until they return home or file several years at once, but I can't tell you if that is advisable (or even allowable). Filing taxes with a tax program will take you through the steps. If you run into something you don't understand, you can save your progress and come back to it once you find the answer. It feels overwhelming, but it really isn't bad at all once you start.

Ask your school for a pay stub and calculate the income you made in 2012  (if you worked in Korea for all 12 months of 2012) or per month (if you worked in Korea for a few months in 2012). You can also calculate the cost of your housing by either asking your school how much rent they pay (if your housing if covered by your employer) or by researching the average cost of your apartment type in your area. You just repport the amount of money you made in the states and/or the amount of money you  made in Korea. If you  make less than $92,000 usd, I don't believe you will own anything to the IRS.

It sounds complicated, but it is really ok once you get started. As for waiting, I am going to file now because I know it is expected and it isn't difficult. It might be much more complicated to attempt to do several years at once from the states at a later date. Better safe than sorry.


  • Grimne_Lothos
  • Expert Waygook

    • 846

    • December 28, 2011, 12:56:27 pm
    • Buyeo, south korea
Re: American Tax Question
« Reply #323 on: March 28, 2013, 01:15:25 pm »
if you don't owe anything then nothing happens if you wait and file 3 or 4 years worth of taxes when you get back to the states.  If you do owe then there will be penalties.


  • acousticr
  • Expert Waygook

    • 503

    • January 24, 2013, 11:42:50 am
    • Gyeonggi
    more
Re: American Tax Question
« Reply #324 on: March 29, 2013, 09:22:54 am »
1. Can I file later?

Yes. The 4868 is super simple so you might want to throw that in the mail, though. You'll automatically qualify for the extension by being overseas, so the only penalty you pay is interest on anything you owe. If you don't end up owing taxes, you don't pay anything.

2. Do I have to file?

Probably. Better safe than sorry, and you'll have to learn this eventually. Get forms 2555 and 1040. Check the EZ versions of each and see if you qualify to use them.

3. I'm not at 330 days yet.

Then wait! You can get an extension or just file late without too much trouble. Figure out when you hit 330 days, and send stuff over then.


$10 off your first order at iHerb.com with this code: BPC852


  • Schellib39
  • Expert Waygook

    • 773

    • March 10, 2011, 03:08:04 pm
    • South Korea
Re: Questions and Answers for American Taxes
« Reply #325 on: April 01, 2013, 02:12:22 pm »
USA's instruction page for U.S. Citizens and Resident Aliens Abroad:

http://www.irs.gov/Individuals/International-Taxpayers/U.S.-Citizens-and-Resident-Aliens-Abroad

According to this page if you have earned less than $57,000USD, then you are able to file online.


  • rocketeerjoe
  • Expert Waygook

    • 769

    • March 08, 2012, 07:52:35 am
    • Jinhae, South Korea
Re: Questions and Answers for American Taxes
« Reply #326 on: April 14, 2013, 11:40:20 am »
I just tried to file an extension with TurboTax but I had to put in my last American address because they do not let you file a foreign address for extensions.

This is so confusing. I have had people tell me I need to file an extension. I have heard I do not have to file at all until I go back home after two years. I have heard that we have a few extra months anyway. I don't know which of these is true.

On top of that, you can't pay for TurboTax at all if your address on your US bank account cards has a foreign address linked with it.

This is all horribly confusing. Did I just mess up by filing the extension with an American address on it?
"If you want to change your direction. If your time of life is at hand. Well, then don't be the rule, be the exception. A good place to start is to stand. Just put one foot in front of the other." - Rankin Bass Santa Claus


Re: Questions and Answers for American Taxes
« Reply #327 on: April 14, 2013, 02:22:02 pm »
USA's instruction page for U.S. Citizens and Resident Aliens Abroad:

http://www.irs.gov/Individuals/International-Taxpayers/U.S.-Citizens-and-Resident-Aliens-Abroad

According to this page if you have earned less than $57,000USD, then you are able to file online.
I haven't yet found an online filing service that will allow you to file online using a foreign address. If anybody has a link please share it. If I can't find a free one, the IRS will like in past years get a paper return from us

BTW DON'T worry about filing or filing for an extension by Monday, if you are an overseas resident, you AUTOMATICALLY have until June 17 (since the 15th is a Saturday) to file, you don't have to file an extension etc. If you file a paper return all you have to do is attach a note saying you are an overseas filer


Re: Questions and Answers for American Taxes
« Reply #328 on: April 14, 2013, 04:16:41 pm »


  • Smilie
  • Waygookin

    • 17

    • August 27, 2011, 06:23:40 pm
Re: American Tax Question
« Reply #329 on: April 23, 2013, 12:36:21 pm »
I'm also confused about taxes. I'm trying to file online and the website ask for an EIN (employer identification number). Does anyone know how to get around that? By the way, I'm using H&R Block, but I assume that all tax sites will ask the same questions. 


  • LindseyN
  • Adventurer

    • 40

    • October 23, 2011, 09:42:40 am
    • Seongnam, South Korea
Re: American Tax Question
« Reply #330 on: April 23, 2013, 12:54:10 pm »
An EIN is an employment identification number that employers in the states have to identify themselves to the federal government. Foreign employers do not have an EIN. Go back and make sure you listed your employer as a foreign employer. You should not be asked for an EIN number if everything is filled out correctly.

I used Turbo Tax for the past two years and never had a problem. I'm not sure about H&R Block, but I can vouch that Turbo Tax was easy. Just make sure to double check everything!


Re: American Tax Question
« Reply #331 on: April 23, 2013, 12:54:43 pm »
You MUST file ever year.  Ever American who earns income anywhere must file.  The 2 year exemption is for Korean tax.  It does not relieve you of your duty to file American tax returns.

Also, you must file a FBAR if you had over $10,000 total in all your foreign bank accounts at any point in the year (so, if you have 2 separate accounts, you must add them together).  This is separate from taxes.  It must be received by June 30th.  No extensions.  Not doing this can lead to nasty penalties, especially if it was willful.  And now that I told you, not reporting would be considered as willful.  :evil:
C is for cookie, that's good enough for me.


  • rocketeerjoe
  • Expert Waygook

    • 769

    • March 08, 2012, 07:52:35 am
    • Jinhae, South Korea
Re: American Tax Question
« Reply #332 on: April 23, 2013, 01:08:45 pm »
I actually purposefully avoided having more than 10K in my American account by paying off enough student loans so I was always shy of it. I hate filling out paperwork so I'll just do that the next year when I qualify for it. ;)
"If you want to change your direction. If your time of life is at hand. Well, then don't be the rule, be the exception. A good place to start is to stand. Just put one foot in front of the other." - Rankin Bass Santa Claus


Re: American Tax Question
« Reply #333 on: April 23, 2013, 01:37:39 pm »
It's so disgusting. The constant intrusion and complication of peoples lives. We are petty English teachers here in S. Korea. Why can't they just leave people who make pittens 28,000 USD alone? Sigh...

@Justanotherwaygook: So I'm on the official FBAR website. WHICH form do I need? From 8938 or Form TD F 90-22.1????.... F*#%ing ridiculous...
« Last Edit: April 23, 2013, 01:43:49 pm by psJohnny7 »


  • Davey
  • Moderator - LVL 3

    • 1820

    • February 01, 2010, 01:36:20 pm
Re: Questions and Answers for American Taxes
« Reply #334 on: April 23, 2013, 01:49:43 pm »
Just in case, remember to check the first post (FAQ), please.
------------------------------------------
Search this site using Google by typing, "site:waygook.org [search term]," especially during peak hours. Alternatively, use the site's search function.

EPIK: VISA, RENEWING, PENSION, ETC:

http://waygook.org/index.php/topic,2614.0.html


Re: Questions and Answers for American Taxes
« Reply #335 on: April 23, 2013, 01:55:18 pm »
There is no information on FBAR forms in the FAQ.


Re: American Tax Question
« Reply #336 on: April 23, 2013, 02:08:05 pm »
I actually purposefully avoided having more than 10K in my American account by paying off enough student loans so I was always shy of it. I hate filling out paperwork so I'll just do that the next year when I qualify for it. ;)

It doesn't matter how much is in your American account.  It only matters how much you have in your Korean/other foreign accounts.

Quote from: psJohnny7 link=topic=1237.msg352595#msg352595
@Justanotherwaygook: So I'm on the official FBAR website. WHICH form do I need? From 8938 or Form TD F 90-22.1????
[/quote

http://www.irs.gov/Businesses/Comparison-of-Form-8938-and-FBAR-Requirements

Probably TD F 90-22.1
C is for cookie, that's good enough for me.


  • popeye2u
  • Expert Waygook

    • 877

    • April 05, 2011, 09:45:37 am
    • S of N. Korea
Re: Questions and Answers for American Taxes
« Reply #337 on: April 23, 2013, 03:03:36 pm »
It's all a waste of paper!
Illegally Screwed By Employers in Korea:  https://www.facebook.com/groups/1628928127347749/


  • Davey
  • Moderator - LVL 3

    • 1820

    • February 01, 2010, 01:36:20 pm
Re: Questions and Answers for American Taxes
« Reply #338 on: April 25, 2013, 04:44:01 am »
There is no information on FBAR forms in the FAQ.

Yes, I know; I was referring to people who may have other inquiries.
------------------------------------------
Search this site using Google by typing, "site:waygook.org [search term]," especially during peak hours. Alternatively, use the site's search function.

EPIK: VISA, RENEWING, PENSION, ETC:

http://waygook.org/index.php/topic,2614.0.html


  • eslatter
  • Explorer

    • 5

    • August 22, 2011, 06:12:54 pm
    • Korea
Re: Questions and Answers for American Taxes
« Reply #339 on: May 21, 2013, 08:55:43 am »
Similar to a few other comments on here, I worked in a hogwon for 3 months and then switched to a public school (in my second contract now). I just received the IRS residency cert but the local tax office is now insisting that I don't get any refund. They said because I worked first at a hogwon, that disqualifies me from receiving the public school taxes back. I understand that it would be only for up to two years (not the hogwon, and not the end of my PS contract) but has anyone else had this experience?