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Tax Advice for Americans Living in South Korea

Are you an American living abroad in South Korea? South Korea is the next hotspot for American life considering its thriving economy. A common question many Americans living there ask is “should I file my taxes with the South Korean or US government?” Expatriate Tax Returns is here to answer your questions and help you with your tax needs.

If you are an American living in South Korea, Expatriate Tax Returns is the perfect company to file your taxes with. We service all people with American citizenship no matter their location. Filing with us is easy and our staff is happy to help answer any questions or resolve any tax concerns.

The South Korean tax calendar follows the same deadlines as the American format: January 1 to December 31. Tax returns must be filed by the 31st of May in the following year. The only difference is that residents in South Korea must pay 50% of their taxes by the 30th of November in the year that the taxes are due.

Americans living in South Korea must also file using specific documents. These documents include but are not limited to:

IRS Form 1040 (tax returns for individual income)

IRS Form 8938 (Specified Foreign Financial Assets; FATCA)

FinCEN Form 114 (Foreign Band and Financial Accounts FBAR)

Expatriate Tax Services is helping Americans all around the world. If you are in South Korea, a different foreign country, or even America, visit www.expatriatetaxreturns.com to connect with a professional tax specialist.

2021 Tax Returns: File and Avoid These Mistakes

 

Don’t miss the deadline! People who have not filed their 2021 tax return have a limited time to complete filing. The extension deadline is October 17, 2022. Learn about the best way to file and how to avoid common mistakes when filing under an extension with Expatriate Tax Returns.

The best way to file tax returns is electronically. Filing electronically is the quickest and easiest way to file since the submission will be immediate, the electronic system can detect form errors, and calculates data. Instead of waiting on the postage system to deliver tax returns or for approval on the filing submission, taxpayers can depend on accuracy and effectiveness by filing online. Filing online helps taxpayers avoid these common mistakes:

Misspellings

Names used for filing should match the spelling on the taxpayer’s Social Security Card and ID. Misspellings could prolong filing time and could disqualify the filing submission.

Inaccurate Information

Information such as the SSN, taxpayer income, address, and other information should be accurate and the exact same as what is printed on the associated documents. Online filing could help prevent submission rejection since the system can prevent mathematical errors.

Missing Information

Provide as much information as possible, especially if the online system is requesting such information. If any data is missing from the submission, preparers will have to collect the information which prolongs the filing process time and can disqualify the submission.

Visit www.expatriatetaxreturns.com if you have any questions or concerns about electronically filing 2021 tax returns under the October 17, 2022 extension deadline.

Identity Theft Prevention for Taxpayers

Identity theft is a common occurrence that everyone is vulnerable to. It is crucial to prevent vulnerability when filing taxes since this process includes confidential information such as social security numbers, addresses, income, and other factors. Expatriate Tax Returns has the advice you need to stay protected. Click below in order to learn more about how to keep your information safe!

Ways to stay protected from identity theft while filing taxes include but are not limited to:

Using VPNs (Virtual Private Networks) and secure browser connections

Always use a secure network when processing banking or tax information. Ensure the connection is private by checking for a lock icon next to the URL of the website.

Safely Using Emails

Watch out for unexpected attachments. Refrain from opening emails with links or attachments that you did not expect to receive. Scammers could use these files as bate for phishing. In addition, keep personal and business email account information separate.

Use Devices Cautiously

We encourage keeping information separate between personal and business computers or other devices.  If a suspicious program is accidentally installed on a personal computer and compromises it, business information stored on that computer will still be safe.

Safely Download and Transfer Files

Phishers commonly use computer programs to steal sensitive information. Avoid downloading files from unknown or suspicious websites. In addition, cautiously transfer files between personal and business computers on a USB drive.

Password Management

It is crucial to managing your passwords discretely and securely. This includes using strong passwords, changing passwords frequently, storing passwords in a safe program, and not sharing passwords.

If you need more advice on avoiding identity theft or have any other questions about tax filing, visit www.expatriatetaxreturns.com to connect with our staff of experts.

Taxpayer Penalty Relief for Certain 2019 and 2020 Returns

Taxpayers experienced significant challenges during the COVID-19 pandemic. Because of this, the IRS issued Notice 2022-36. This issue includes relief of penalties to select people and businesses who filed late 2019 and/or 2020 returns. Expatriate Tax Returns has helpful information to keep you off the tax hook. Contact us today to see if you qualify for those 2019 and 2020 returns.

If you already paid penalties for these filing years, don’t fret! By the end of September, 1.6 million taxpayers will receive over $1.2 billion in refunds or credits.

If you failed to file federal taxes by April 18, 2022, tax filing deadline, this penalty relief is for you. Penalties for missing this deadline are often implemented at a monthly rate of 5% and go up to 25% of unpaid taxes. This relief includes the 1040 and 1120 form series, along with documents associated with Notice 2022-36.

To qualify for this relief, file eligible income tax returns at www.expatriatetaxreturns.com by September 30, 2022.

People who are required to file various returns (banks, employers, businesses, 1099 workers, etc.) also have a chance of penalty relief. All eligible 2019 income tax returns must have been filed by August 1, 2020, and 2020 returns must have been filed by August 1, 2021, to qualify for this relief.

Some exclusions to this relief apply. Disqualifications include but are not limited to:

  • Filing of a fraudulent return
  • The penalty was accepted as an offer to resolve an agreement
  • Penalty enacted by court determination

If you have questions about late tax filing or other tax concerns, visit www.expatriatetaxreturns.com to connect with an expert.

Paying Interest to the IRS When They Could be Paying it to you?

$3.3 billion – the amount of refund interest the IRS paid to taxpayers in the fiscal year 2021.

Did you know that, by law, the IRS must pay you interest on your tax refund if it takes them longer than 45 days to process it? As of June 21, 2022, the IRS had more than twice as many returns waiting to be processed as it did the year before.

Even better news? As of July 2022, the guaranteed interest rate on unpaid refunds increased to 5%. Meanwhile, the national average interest rate on a savings account is a measly 1%.

With the average individual refund at $3,263, there could be an extra $163 in your pocket just for filing your 2021 tax return!

So how do you get it? The first step is to move to file your 2021 tax return with Expatriate Tax Returns to the top of your To Do list. Preparing your taxes can be stressful, time-intensive, and overwhelming. In addition to peace of mind, having a tax professional such as Expatriate Tax Returns in your corner can help you avoid making costly mistakes while maximizing tax breaks that you may not even be aware of. We’re here to help! 

Perhaps you decided to prepare your taxes this year and filed an extension, but now you have an aching sense of dread knowing it’s yet to be completed? Our professional tax experts can also help you take it over the finish line. It’s essential to find a tax professional that you trust.

As Benjamin Franklin famously wrote: “remember that time is money.”