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  • ashwalton
  • Adventurer

    • 65

    • September 09, 2016, 09:25:25 am
    • Seoul, South Korea
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Re: Questions and Answers for American Taxes
« Reply #440 on: March 06, 2018, 08:25:33 am »
Thank you, I will look into all the information you have provided.


Re: Questions and Answers for American Taxes
« Reply #441 on: March 06, 2018, 08:26:29 am »
Hello, this is the first year where I have lived in SK and only worked in SK and I need to file my taxes in the USA. I have been told to file a form 2555 but my mom, who does my taxes and has power of attorney over me, says that I need a document from the school that has my yearly wage for 2017. Does this document exist? and if it did wouldnt it be 100% in Korean? I am an EPIK teacher and only one CT can speak English but she isn't in charge of my paperwork and has no idea what I need. Thanks for any help!

*I am still within the two year tax exception for Korea if that affects anything.
:shocked: :shocked:

Ok so you can find the documents online at http://www.hometax.go.kr/websquare/websquare.html?w2xPath=/ui/pp/index.xml you need to create an id and log in. I was on there yesterday and 2017 isn't all updated yet, my co-t said after 3/12/18 it should be all there.

For the 2555 form you need to have residency in a foreign country for a certain amount of time-
Quote
Part II
Bona Fide Residence Test
To meet this test, you must be one of the
following.
A U.S. citizen who is a bona fide
resident of a foreign country, or countries,
for an uninterrupted period that includes
an entire tax year (January 1–December
31, if you file a calendar year return), or
A U.S. resident alien who is a citizen or
national of a country with which the United
States has an income tax treaty in effect
and who is a bona fide resident of a
foreign country, or countries, for an
uninterrupted period that includes an
entire tax year (January 1–December 31, if
you file a calendar year return). See
Table 3 at IRS.gov/individuals/
international-taxpayers/tax-treaty-tables
for a list of countries with which the United
States has an income tax treaty in effect.
Whether you are a bona fide resident of
a foreign country depends on your
intention about the length and nature of
your stay. Evidence of your intention may
be your words and acts. If these conflict,
your acts carry more weight than your
words. Generally, if you go to a foreign
country for a definite, temporary purpose
and return to the United States after you
accomplish it, you aren't a bona fide
resident of the foreign country. If
accomplishing the purpose requires an
extended, indefinite stay, and you make
your home in the foreign country, you may
be a bona fide resident. See Pub. 54 for
more information and examples.
Line 10. Enter the dates your bona fide
residence began and ended. If you are still
a bona fide resident, enter “Continues” in
the space for the date your bona fide
residence ended.
Lines 12a and 12b. If you check “Yes”
on line 12a, enter the type(s) of family
member(s) and the date(s) they lived with
-2- Instructions for Form 2555 (2017)
Page 3 of 11 Fileid: … ions/I2555/2017/A/XML/Cycle06/source 8:08 - 25-Oct-2017
The type and rule above prints on all proofs including departmental reproduction proofs. MUST be removed before printing.
you on line 12b. Acceptable entries for
family members on line 12b include child,
foster child, grandchild, parent,
grandparent, brother, sister, aunt, uncle,
nephew, niece, son, daughter, spouse, or
other. If you check “No” on line 12a, leave
line 12b blank or enter “None.”
Lines 13a and 13b. If you submitted a
statement of nonresidence to the
authorities of a foreign country in which
you earned income and the authorities
hold that you aren't subject to their income
tax laws by reason of nonresidency in the
foreign country, you aren't considered a
bona fide resident of that country.
If you submitted such a statement and
the authorities haven't made an adverse
determination of your nonresident status,
you aren't considered a bona fide resident
of that country.
Part III
Physical Presence Test
To meet this test, you must be a U.S.
citizen or resident alien who is physically
present in a foreign country, or countries,
for at least 330 full days during any period
of 12 months in a row. A full day means
the 24-hour period that starts at midnight.
To figure 330 full days, add all separate
periods you were present in a foreign
country during the 12-month period shown
on line 16. The 330 full days can be
interrupted by periods when you are
traveling over international waters or are
otherwise not in a foreign country. See
Pub. 54 for more information and
examples.
Note. A nonresident alien who, with a
U.S. citizen or U.S. resident alien spouse,
chooses to be taxed as a resident of the
United States can qualify under this test if
the time requirements are met. See Pub.
54 for details on how to make this choice.
Line 16. The 12-month period on which
the physical presence test is based must
include 365 days, part of which must be in
2017. The dates may begin or end in a
calendar year other than 2017.
You must enter dates in both
spaces provided on line 16. Don't
enter “Continues” in the space for
the ending date.
https://www.irs.gov/pub/irs-pdf/i2555.pdf


Also I filed 2555 many times and never included the wage earner statements. You should if you can get them, but if not just file anyways.


Re: Questions and Answers for American Taxes
« Reply #442 on: March 09, 2018, 08:21:24 am »
BTW, I saw the earlier post that foreign-earned income can't be contributed to a Roth IRA. That's not strictly true.

If you have use the foreign-earned income exclusion, you can't use any of the excluded money to contribute to Roth or a traditional one either. But if you don't use the exclusion, you'd be fine and it can be advantageous in that you can also apply a "foreign taxes paid" credit (assuming you pay taxes here) and would be eligible to contribute to IRAs.

https://www.thebalance.com/ira-for-workers-abroad-3193218
https://www.thebalance.com/foreign-tax-credit-3193475


  • sh9wntm
  • Veteran

    • 198

    • February 23, 2018, 03:23:39 pm
    • Seoul
Re: Questions and Answers for American Taxes
« Reply #443 on: June 11, 2018, 08:35:50 am »
I'm an American and I'm pretty sure I haven't been getting taxed on my paychecks. I haven't filed for tax exemption. I pay pension and healthcare, but I haven't seen anything other than that. Am I missing something here, or is it possible they just assume my documents are in?


Re: Questions and Answers for American Taxes
« Reply #444 on: June 11, 2018, 03:15:15 pm »
I'm an American and I'm pretty sure I haven't been getting taxed on my paychecks. I haven't filed for tax exemption. I pay pension and healthcare, but I haven't seen anything other than that. Am I missing something here, or is it possible they just assume my documents are in?
Which taxes are you referring to, Korean or American?

For Korean taxes:
If you file (and pay for) form 8802 (Application for United States Residency Certification), the US gov't will send you a form that certifies you are a resident of the US for tax purposes. Then you can give that to your employer and for the first 2 years you live abroad, it makes you exempt from paying taxes here. After those first 2 years, you're no longer eligible.

For US taxes:
You can have all your foreign earned income up to around $100K exempt/excluded from tax, but only if you were a bona fide resident of the foreign country for the entire year or were physically outside the US for at least 330 days of the year.

If you don't meet the physical presence or bona fide resident tests (either not a resident for whole year or present abroad for less than 330 days), you can get a credit on foreign taxes paid.

Either way, you have to report your income.


  • paxxie
  • Explorer

    • 9

    • May 06, 2019, 08:03:59 am
Re: Questions and Answers for American Taxes
« Reply #445 on: March 11, 2021, 03:09:40 am »
For those that have filled out the 8802 form:
In section 10 where the Penalties and Perjury Statement is made, what did you include?

I am trying to decide which statement to use.

"Applicant Full Name" is a U.S. resident and will continue to be throughout the current tax year.

or

Countries other than Japan: [Insert name of individual and TIN] was a U.S. resident within the meaning of Article
  • of the U.S.-[country] treaty (including, in some cases, physical presence in the United States) immediately before entering [country]. The assignment began on [date] and ends on [date]. Article
  • of the U.S.-[country] treaty provides a [2 or 3] year exemption from income tax.


If it is the latter, what is the article #?
Bump, because I'm trying to figure out what to put on line 10 as well. Thanks!