Questions and Answers for American Taxes

[jrwhite82]

You don't need a W2 to file taxes. 

You can back file easily by going to the IRS website, downloading the forms for back filing and then send them off.  I think even turbotax lets you back file too.

It's still not too late to file your 2010 return (I think people living abroad get an automatic extension). 

You might wind up owing some for 2009, but it won't be a lot.  In 2010, you probably won't owe much either.  Did you have any income from January to April while in America?  If so, you should at least have those W2s.  Then for the time in Korea, we really aren't making that much that your tax liability will be much.  Especially if you have student loans and other deductions you can take.  When you do file (WHICH YOU SHOULD!) focus on maximizing your deductions.

[jrwhite82]

Don't think that the amount of money you make (or don't make) will guarantee that you slip under the radar.  You are running a risk by not filing.

Don't forget you need to do your state taxes too. 

[gugalgal]

I don't know if the form works for reimbursement, but, once you secure the form, you will no longer be required to pay taxes in Korea.  You can obtain the form once you have filed taxes in the U.S.  It is a one page document which states that you are a U.S. resident for purposes of taxation.  It costs around $45.  You can call or contact the IRS(800-TAX-FORM) for further information about obtaining the form, but, it's a simple process, although it may take a few weeks/months to receive the document.  I had the form mailed to a U.S. address and received it within 4-6 weeks. 

[gugalgal]

Request Form 8802, Application for United States Residency Certification.  You can request it on the IRS website.  Here's a helpful link:  http://www.irs.gov/publications/p54/ch06.html

[younameit]

I am new to the filling taxes game. I would also like to know the right steps, as I am trying to file my taxes now.  I know for people from the US we get a 2 month automatic extension.

Here is a good article I have just found. http://www.asktheconsul.org/nl_apr11.pdf

I still am unsure what forms I need to fill out and do I need a W2? 

Anybody that is in the "know how" please let us know. 

Thanks.

[JamericanTeacher]

I'm American so we don't have to pay taxes in Korea for 2 years.  I started at my first school in June 2009 and left in June 2010.  I returned to the US and returned to Korea to work with a different school in August 2010 and will finish my current contract in August 2011.

The question is: when does my 2 year tax-break end?  June 2011 or August 2011?  I'm thinking August but who knows what kind of technicalities exist that would cause taxation to start in June. 

Thought?

[GraceNYC116]

Because the tax rules are so specific, you should consult a tax adviser/CPA. 

[jauntwithjo]

I realize that I'm exempt from American taxes for two years with a several forms, but for the 2010 tax year, I still made a couple thousand within the States. I would still have to file taxes for those, right? I'm assuming yes, but want to check.

[shayrone3]

I was told by my recruiters many times that I would need my Residency Certificate (IRS form 6166) in order to be exempt from paying taxes both in the US and S. Korea.

I finally got the form, but no one at my school has mentioned anything about it, nor do I think I am paying taxes in my paychecks... Am I right, or do I need to give it to my school?

[weirdgirlinkorea]

Make a copy and give it to your main co-teacher. They need it even if they haven't asked for it.

[partheania81]

The school may not ask for it now, but they WILL... give it to your head co-teacher... who should give it to the school's accountant... my school asked for mine during my 11th month... I had to pay for all the taxes up to the 11th month till they received it (cus I never went and got one... they gave me all the money back once they got the certificate).

[Pants]

I would recommend that you get someone at your school to find out about the tax and the residency certificate. I went through the same thing where my co insisted that she didn't need my tax forms from South Africa, and then, at the end of Feb, right after a holiday, I was told I was being taxed 300,000. Then my co started running around trying to figure out what to do about the situation when I reminded her I'm not supposed to be taxed. Now, 3 months later, the situation is still not sorted out, that co has left to another school leaving my new co in charge of the mess, and no one at the tax office can answer any of my questions. They honestly seem very confused about the whole situation. As far as I can gather from my other teacher friends, the school is supposed to file your tax info for you, and the admin office should take care of it.

[lil l]

I am from south africa and was told that the SARS has no arrangements with the korean government.
Can anyone shed light on this please.

[Pants]

lil l, there were problems for a while as SARS stated that it doesn't produce Residency Certificates for SA citizens, so we couldn't claim those tax-free years. But someone from an SA recruiting agency took the matter in hand. Visit the South Africans in South Korea group on Facebook and look for a posting by Cliff Smith for more info.

[dereklee003]

I know the basics. We can claim exemption from paying Korean taxes for the first 2 years here. We have to do this by filling out the 8802 form. Then, after 2 years, we will be taxed by Korea. Right?

But....I've been here over 2 years. First 1.5 years was at a hagwon. I think they may have taken out taxes, but I don't remember for sure! (I know.) I have been teaching public school since Aug 2010, and will stay thru until Aug 2012. My public school has not taken out any taxes thus far, nor have they told me to give them the tax exemption form.

Do I still need to do this? Will this come back to bite me ?

[Za]

Yes Yes Yes it will def come back to bite you!!!! They should either deduct the taxes monthly OR they will deduct a HUGE ass amount at the end of your contract. Maybe you would prefer to it that way, but i def don't want half a paycheck at the end of my contract. 

[dereklee003]

Okay...But since I've been here over two years already, I won't qualify for tax exemption anymore right? If anything, the first 6 months of my PS job (which are the last 6 months of the first 2 year period) are the only ones that would qualify for exemption, right?

[rocky228]

Being an American, I know we are exempt from taxes for 2 years.  So do I still need to do my taxes in the states? I mean, I kinda forgot about it last year, but I can always go back and refile them.  Also, how do I provide any proof of my work here in korea, especially when everything is in korean, even the "pay stubs" i get...which is more just like a woman at the administration office typing out a balance sheet with korean excel.?

[tikomg]

Hi,

This is my first time working in Korea, but will be leaving at the six-month mark. I know that to opt out of paying US and Korean taxes, you file a US residency certificate with your school here to opt out of Korean tax, and fill out the physical presence test to avoid paying us tax if you were out of the country for more than 330 days.

My question is...what do I do if I will NOT be out for more than 330 days? I have been paying Korean tax the entire time I've been here (over 3 months) because I am STILL waiting on the Residency Certificate that I requested BEFORE coming. anyways, that is another story...

Should I just pay Korean tax and then do I not have to pay US tax? How do I prove I paid Korean tax? What is required by the IRS?

I have done quite a bit of research and have come up with vague answers for less than 330 days...and the IRS people on the phone are helpless. I've called multiple times and either they don't know and transfer me and in the process my call is "lost" or maybe purposely hung up on...

I have read a few posts that claim people have sufficiently done the physical presence test with NOT being in the US for the entire time and it was no problem. I won't be out for either tax year completely anyways. I arrived in February (already into 2011 tax season and was initially scheduled to leave in 2012, so into 2012 tax season.) I am guessing almost everyone here runs into that, not here for 330 days of any tax season...

Also, what do we even submit as documentation for our salary in Korea? Or is it just whatever we report? I don't get a pay stub or anything official.

Thoughts? Advice? Trying to avoid paying a lump sum of taxes in 2012.

Thanks!

[sungsaneem]

@jauntwithjo- Technically even though you are exempt from paying U.S taxes from teaching here, you would still need to report your income. In this case, you should report your income from back home in addition to your income from here. That's what I did and its relatively easy.