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Re: Tax Exemption Information for Americans: Residency Certificate
« Reply #40 on: February 08, 2011, 08:43:51 pm »
"We regret to inform you that we were unable to process your request without additional information"

Have you filed taxes in the US for the last few years? If you haven't, then the IRS has no way to judge whether or not you have been a US resident. I believe that in that case they require a sworn statement under penalty of perjury.


  • javdek1
  • Adventurer

    • 40

    • December 02, 2010, 08:08:09 am
    • BUSAN
Re: Paying taxes to the good ol' US of A
« Reply #41 on: February 09, 2011, 08:07:33 am »
so, i do not have the double exemption status. i was not able to file before i left.
i am not aware of weather my school is paying taxes, i am sure they are do as my pay is lower than what i should be getting.
yet my questions are; what if i do not file taxes? will they stop me and make me pay and fine me before i leave the country (such as at the turnstyle in the airport) and just pay lump sum then? is there a contact to see the amount of taxes i owe before i leave? are these childish attempts to skirt the responsibility of paying taxes?


  • glim67
  • Waygookin

    • 11

    • November 29, 2010, 07:51:41 am
    • seoul
Re: Paying taxes to the good ol' US of A
« Reply #42 on: February 09, 2011, 08:57:24 am »
In order to submit my foreign earned income to the IRS, I would have to fill out a FORM 2555(EZ) and 1040, right? Could I use this on Turbo Tax? The tricky part is that I also have interest income from my savings account in America & interest payments on education expenses (student loan).  Could I do this on my own? 

How have you guys gotten your FORM 1040 professionally done, or did you do it by yourselves?


Re: Questions and Answers for American Taxes
« Reply #43 on: February 09, 2011, 11:51:29 am »
In addition to the required 1040, I would prefer to use 2555-EZ form since it's much shorter. HOWEVER, my big question is: Must we claim our foreign housing allowance as income? If so, I guess we have to fill out the full 2555 and not the 2555-EZ. I'd have to ask my school to tell me how much they pay each month for my officetel (I'm curious to know this anyway).

I found this information here (http://www.missouribusiness.net/irs/taxmap/pubs/p54-013.htm) You can use the 2555-EZ form if all seven of the following apply.

You are a U.S. citizen or a resident alien. (Yes!)
Your total foreign earned income for the year is $85,700 or less. (Yes!)
You have earned wages/salaries in a foreign country. (Yes!)
You are filing a calendar year return that covers a 12-month period. (Yes!)
You did not have any self-employment income for the year. (Yes!)
You did not have any business or moving expenses for the year. (Yes!)
You are not claiming the foreign housing exclusion or deduction. (????)
« Last Edit: February 09, 2011, 11:56:16 am by duchessrachel »


Re: Questions and Answers for American Taxes
« Reply #44 on: February 09, 2011, 12:06:49 pm »
In addition to the required 1040, I would prefer to use 2555-EZ form since it's much shorter. HOWEVER, my big question is: Must we claim our foreign housing allowance as income? If so, I guess we have to fill out the full 2555 and not the 2555-EZ. I'd have to ask my school to tell me how much they pay each month for my officetel (I'm curious to know this anyway).

I found this information here (http://www.missouribusiness.net/irs/taxmap/pubs/p54-013.htm) You can use the 2555-EZ form if all seven of the following apply.

You are a U.S. citizen or a resident alien. (Yes!)
Your total foreign earned income for the year is $85,700 or less. (Yes!)
You have earned wages/salaries in a foreign country. (Yes!)
You are filing a calendar year return that covers a 12-month period. (Yes!)
You did not have any self-employment income for the year. (Yes!)
You did not have any business or moving expenses for the year. (Yes!)
You are not claiming the foreign housing exclusion or deduction. (????)

From what I understand, the foreign housing exclusion or deduction is used to reduce your income that IS subject to tax (ie any foreign income over $80,000 or $90,000 or whatever the current limit is). So if you need to claim that one, I'd really like to know what school you work at  :)


Re: Questions and Answers for American Taxes
« Reply #45 on: February 09, 2011, 12:32:07 pm »
I don't know if we need to claim the housing allowance as part of our foreign income or not. That was my question. This would have nothing to do with my school in Korea. It would have to do with the IRS in the US wanting to know exactly, down to the penny how much money I am making abroad- salary AND housing allowance. If it's not required by the IRS for me to declare the value of the housing allowance that the Koreans give me, I will simply file the 2555-EZ form.
« Last Edit: February 09, 2011, 12:52:08 pm by duchessrachel »


  • helloana
  • Veteran

    • 80

    • September 08, 2010, 03:25:00 pm
    • Daegu, South Korea
Would it be illegal? Tax question.
« Reply #46 on: February 17, 2011, 10:57:32 am »
Does anyone know if it would be illegal to file my taxes from 2010 up until I came to Korea (in August) but didn't claim my foreign income until the following year? I am supposed to get a huge chunk of money from when I worked January-July but as soon as I put in my income from Korea, I ended up only getting $20 bucks back.

I hope that makes sense? I noticed that my vocabulary and sentence structure has gone down the drain after being here for awhile.


Re: Would it be illegal? Tax question.
« Reply #47 on: February 17, 2011, 11:01:17 am »
Are you from the US?  If yes you would be excluded from claiming foreign income up to ~$91K.  You'll just need to wait until you have been here for 330 days to file. 


  • strawberry
  • Expert Waygook

    • 533

    • February 17, 2011, 10:08:30 am
    • Gyeongbuk, South Korea
    more
Re: Would it be illegal? Tax question.
« Reply #48 on: February 17, 2011, 11:06:25 am »
I thought because I was exempt it didnt matter, so I ticked the "no income" box when filing my taxes earlier in the year... only to find out there's a place where I was supposed to write down my "non-taxable" income.. my bad.


  • moonhaus
  • Waygookin

    • 11

    • June 23, 2010, 03:42:38 pm
    • Yanggu, South Korea
Re: Questions and Answers for American Taxes
« Reply #49 on: February 22, 2011, 12:49:00 pm »
Hey guys

My contract started in April, so I don't qualify for the physical presence test. But I did turn in the f8802 form shortly after my arrival.

So even though I've been working in Korea for almost a year, would I still have to pay taxes in the states?

thanks!


  • gwiffey
  • Adventurer

    • 45

    • April 29, 2010, 01:40:37 pm
    • Gyeongbuk, South Korea
Re: Questions and Answers for American Taxes
« Reply #50 on: March 02, 2011, 01:39:02 pm »
What I'm curious about is how to figure the exchange rate required for both the 1040 (line 7) and the 2555 (line 17)? I'm sure there was plenty of fluctuation in the year 2010 between the won-dollar exchange rate. So can we just choose any rate we want at any point in 2010?

My second question is what do we do about our income forms? In the U.S. an employer would supply us with W-2 forms, but we don't have that here. Is there any official form (which recognizes our salary) that we have to attach to the 1040 and 2555?


Re: Questions and Answers for American Taxes
« Reply #51 on: March 02, 2011, 01:39:11 pm »
What I'm curious about is how to figure the exchange rate required for both the 1040 (line 7) and the 2555 (line 17)? I'm sure there was plenty of fluctuation in the year 2010 between the won-dollar exchange rate. So can we just choose any rate we want during that time?

My second question is what do we do about our income forms? In the U.S. an employer would supply us with W-2 forms, but we don't have that here. Is there any official form (which recognizes our salary) that we have to attach to the 1040 and 2555?

To figure out the exchange rate, I used the historical exchange rate calculator at the Bank of Canada website (http://www.bankofcanada.ca/en/rates/exchform.html). I get paid the same amount every month on the 25th, so it was pretty easy to just put my salary amount in the calculator and run the conversion for each month. You will also need to write a short letter explaining how you arrived at that amount and which exchange calculator you used.

There is no W2 equivalent here. You could attach a copy of the page of your contract that states your monthly salary amount, but there is no requirement. The IRS is trusting you to accurately report your income.

Good luck. Taxes are confusing mess even if you aren't living in foreign country...


  • frisbee649
  • Waygookin

    • 19

    • October 04, 2010, 07:51:51 am
    • Goyang City
Re: Questions and Answers for American Taxes
« Reply #52 on: March 02, 2011, 01:42:03 pm »
Here is a sheet that shows the average exchange rate for the 2010 tax year.  I am using 1159.873=$1

At the bottom of the sheet it states

"The Internal Revenue Service has no official exchange rate. Generally, it accepts any posted exchange rate that is used consistently."




  • frisbee649
  • Waygookin

    • 19

    • October 04, 2010, 07:51:51 am
    • Goyang City
Re: Questions and Answers for American Taxes
« Reply #53 on: March 02, 2011, 01:44:46 pm »


  • gwiffey
  • Adventurer

    • 45

    • April 29, 2010, 01:40:37 pm
    • Gyeongbuk, South Korea
Re: Questions and Answers for American Taxes
« Reply #54 on: March 02, 2011, 01:52:50 pm »
thanks mr sam teacher and frisbee, that helps a lot. Hopefully I'll be able to finish it off from here.


  • PGraham3
  • Explorer

    • 6

    • October 12, 2010, 01:15:16 pm
    • Gimpo, South Korea
Re: Questions and Answers for American Taxes
« Reply #55 on: March 02, 2011, 02:29:03 pm »
Will my 3 months of foreign earned income be added to my total US earned income for the year?

I arrived in early October last year and let's say I made $30,000 from January to September, which puts me in the 15% tax bracket. Then I made approximately $6,000 in foreign earned income that would essentially put me at $36,000 in total income for the year and that would unfortunately put me in the 25% tax bracket and I'd have to pay a bunch more in taxes. Can anyone answer my question?



Re: Questions and Answers for American Taxes
« Reply #56 on: March 02, 2011, 02:33:49 pm »
Will my 3 months of foreign earned income be added to my total US earned income for the year?

I arrived in early October last year and let's say I made $30,000 from January to September, which puts me in the 15% tax bracket. Then I made approximately $6,000 in foreign earned income that would essentially put me at $36,000 in total income for the year and that would unfortunately put me in the 25% tax bracket and I'd have to pay a bunch more in taxes. Can anyone answer my question?

See the above thread... Basically you need to file a 2350 (there is a link earlier in the thread) that will allow you to postpone filing your taxes until you've been in a foreign country for 330 days. Then you'll file your 1040 and a 2555, which excludes your foreign income from your US taxes.


  • gwiffey
  • Adventurer

    • 45

    • April 29, 2010, 01:40:37 pm
    • Gyeongbuk, South Korea
Re: Questions and Answers for American Taxes
« Reply #57 on: March 02, 2011, 03:20:58 pm »
One more thing I'd like to get cleared up...

It seems a lot of people think that they can (legally) get out of paying taxes in both the US and Korea. However, in order to get out of taxes in Korea, you need a Residence Certificate, which basically says you are a tax payer in the USA. Ok fine, you can do that, but then, if you want to be exempt from paying taxes in the USA, then you have to fill out form 2555. On form 2555, Part I #3, it asks "Was your tax home in a foreign country or countries throughout your period of ... physical presence?" If you did in fact turn in your residence certificate, then basically you are saying you are a tax payer in the US, and thus, your answer to this question would be "No, my tax home was not in a foreign country." In which case, you would not be exempt from paying taxes in the USA.

Am I right, or is there something here that I'm missing?


Re: Questions and Answers for American Taxes
« Reply #58 on: March 02, 2011, 05:56:25 pm »
One more thing I'd like to get cleared up...

It seems a lot of people think that they can (legally) get out of paying taxes in both the US and Korea. However, in order to get out of taxes in Korea, you need a Residence Certificate, which basically says you are a tax payer in the USA. Ok fine, you can do that, but then, if you want to be exempt from paying taxes in the USA, then you have to fill out form 2555. On form 2555, Part I #3, it asks "Was your tax home in a foreign country or countries throughout your period of ... physical presence?" If you did in fact turn in your residence certificate, then basically you are saying you are a tax payer in the US, and thus, your answer to this question would be "No, my tax home was not in a foreign country." In which case, you would not be exempt from paying taxes in the USA.

Am I right, or is there something here that I'm missing?

I'm not sure about everyone here, but I got here in Sep 2010. On my 8802, I requested certification for 2009, during which I was a US taxpayer. I qualified based on my tax payment from 2008. The IRS sent me a certificate for 2009, and I gave it to my school. No problems whatsoever.
So when I filled out the 2555 I could check "yes" to that question with a clear conscience. Basically, I AM subject to Korean taxes while I am here, but due to the treaty Korea has agreed to exempt me. The 8802 only proves that I was an American taxpayer PRIOR to my arrival in Korea.
« Last Edit: March 03, 2011, 06:55:19 am by mr sam teacher »


Re: Questions and Answers for American Taxes
« Reply #59 on: March 02, 2011, 11:52:38 pm »
sam teacher is correct