Most Americans/American permanent residents living abroad are required to file a U.S. Income Tax Return in order to avail themselves of the Foreign Earned Income Tax Exclusion. The Exclusion allows a taxpayer not to pay U.S. taxes on all of one’s earning under a specific threshold. You may lose the Exclusion if you do not file the return. You can file your U.S. taxes from within Korea.
The Earn Income Tax Exclusion may be filed via IRS Forms 2555 or 2555-EZ. Additionally, Americans/American permanent residents must report certain assets above a specific reporting monetary threshold. Additional information may be found at: IRS
Additionally, if a United States person (defined as citizen; resident; entity including but not limited to, corporations, partnerships, or limited liability) has a financial interest in/ signature authority over a foreign financial account then the electronic filing of the Report of Foreign Bank and Financial Accounts (FBAR) is required if the aggregate value of the foreign accounts exceed $10,000 at any time during the calendar year.
The FBAR must be received by the Department of Treasury on or before June 30th of the year immediately following the calendar year being reported.
For more information on FBAR please see: FBAR Reporting.
Similar Posts:
- File Your U.S. Taxes in Korea: Earned Income Tax Exclusion/FBAR
- Filing your U.S. Taxes as an Expat in Korea: Foreign Earned Income Tax Exclusion
- Korean Tax Law Amendments for Individuals for 2021
- Foreign Account Tax Compliance Act (FACTA) in Korea
- Korean Year-End Tax Settlement: Common Errors & Omissions
- Korean Corporate Tax Rate
- Korean National Tax Service Tax Law News Release to Foreign Corporate Taxpayers: Korean Tax Law Updates
- Korean Tax Law Amendment Press Release by Korean Government
- New Provisions regarding the Korean Act on Reporting and Using Specified Financial Transaction Information
- Korean National Pension Contributions and Tax Deductions for Freelancers and Expats Residing in Korea