This is how I spend my free time?
Korean life October 5th. 2006, 7:25pmToday was the first day off for Korean Thanksgiving. We didn’t go anywhere, so I had the day to do something I had been putting off since my trip back to the United States: My Taxes. While I was in the United States I visited my family’s accountant. My father went with me, as he handles the family’s filing and I needed all the help I could get to catch up on a few years of filing since I’ve come to Korea. The United States requires citizens to file tax forms even if they didn’t work or live in the country the entire year.
The family accountant gave us a list of information he thought he would need. When we returned to Korea we tried to collect as much as possible. We had a few trips to the tax office, called old employers, argued with people about getting paperwork and documentation. It’s a huge hassle. If I didn’t have a native speaker to get in touch with all the people I needed, this would have been an impossible task.
Working on all the results for submitting it to my family’s accounant today, I found out how little I made in the past few years in American dollars (living costs and the Korean tax system balance this out). It was also sobering to realize that half my bosses were probably crooks, or at least tax cheats. Let’s call them "Creative Accountants" to be civil about it.
After about three hours of calculations and lots of documentation, I had prepared something I felt would be of some use to my family’s accountant.
For anyone wondering what they might (*) have to do to file American taxes:
1. Find out the months you were employed in Korea.
2. Find out your employer’s name and address.
3. Have Contracts or Bank records of your salary transactions. Something official looking to prove your salary.
4. Find out the Average Exchange Rate of the Won for the dollar. I was told a yearly average exchange rate number would be enough.
5. Any tax papers you can prepare proving you paid Korean taxes might help. Expect this to be impossible as a good majority of Korean school owners do not file taxes, understate them, or keep no records of previous employees.
6. Create a summary of your taxable income and make all statements in American Dollars (after accounting for the exchange rate for the year in question)
7. Hope that everything above is enough and that your salary is low enough to get a tax exclusion.
*Warning, I am not an accountant, this is simply advice given to me that I am parroting on to help anyone in a similar situation that has no clue where to begin.**
** Your mileage may vary.***
*** Offer not valid in Tennesee, Alaska or Hawaii. ****
**** Do not Pass Go. *****
*****You sank my battleship! ******
****** Yahtzee!
4 Responses to “This is how I spend my free time?”
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October 5th, 2006 at 8:40 pm
This is going to be the first year I’m not going to get all my money back when I file taxes. However, since I’m making substantially more money than I ever have before, that’s okay. My only gripe is most likely never seeing the social security money ever again. I could be putting that into an IRA or something.
Whoa. I sounded like a Republican there. Dirt not coming off! AAHHHH!!
October 5th, 2006 at 10:37 pm
Just think, I pay into the Korean National Pension Scheme (Yes, that’s the name). Unless I leave the country with no plans to return, I won’t get that money back unless I retire at 65 or so, but with the aging Korean generation and a declining birth rate, Korea is as bad off as the United States when it comes to retirement plans actually returning their dough.
Other countries, like South Africa, don’t require you to pay taxes twice. If you pay them in the place you were abroad, they don’t expect to see any of it. Of course, South African’s need visas to travel nearly anywhere, so they aren’t always as travel and work friendly as the United States in some aspects either.
Of course, the tax rate here for teachers (varies per profession), at the moment, is 3.3% Even if I pay all my Korean taxes and all my pension, I still come out way ahead than if I was a teacher in the States. Since my current salary, in raw US dollars is a joke, I expect to get most of my money back anyway. (Knock on wood). Low taxes and an extremely low cost of living is the only thing that keeps me saving money to get ahead.
October 5th, 2006 at 11:35 pm
Pension Scheme? Hehe. That’s funny. Sounds like something the Attorney General investigates the mob over: larceny, racketeering, pension scheme…
My tax bracket will probably be in the 15% range. Hopefully my withholding is set properly and I won’t owe any money. That’s my biggest fear.
October 7th, 2006 at 6:14 am
15%…I wish mine is 22% plus 11% national insurance. This will soon be 40% plus 12%….it’s hardly worth working