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Expatriate Tax Returns

American Expats

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.

Checking the Status of Your Return

Once you file your taxes, you may be anxious to receive your return. The IRS has a tool that can help track your refund through the process. The “Where’s My Refund” tool is available on IRS.gov to all those who have filed.
There is also an app available for download called IRS2Go app. Users will need their social security number, tax filing status, and refund amount to utilize either tool.

The tool will provide three phases in which to track to refund:

  • Return received
  • Refund approved
  • Refund sent

When the status changes from received to approved, the IRS is ready to send your refund via your chosen method. Keep in mind that the tool is updated once a day, so set a reminder for yourself to check it and stay on top of your refund.

Communication from the IRS

Now that Tax Day has passed, some consumers may open their mailbox to find a letter from the IRS. The IRS will always communicate via mail, so it is essential to read the letter carefully and in its entirety. The IRS may reach out for various reasons, including a change in your refund, a question regarding your tax return, a request for more information, or a balance is due.
If the request is for an audit, give our team a call, we are always available to assist you throughout the entire process.
It is important to respond timely to any request sent via the IRS and act accordingly. If a balance is requested, pay as soon as possible to avoid further issues. Options for payment installments can be found on the IRS website.
The IRS will only reach out via email, phone calls, or emails claiming to be the IRS should be considered fraudulent.

Tax Benefits for Small Business Owners

The IRS focuses on small business owners and provides tips and tax benefits to help them get the most out of their operations.
First, many small business owners can claim the home office deduction. To qualify, a business owner must use a specific room in the home exclusively for business.
To claim the credit, filers should use Form 8829 Expenses for Business Use of Your Home. This form calculates the credit based on the expenses of home operations related to personal and business use. Additionally, businesses can often deduct business-related food and beverage purchases. To qualify, the owner or one employee of the business must be present at the time of sale. Note that grocery or convenience stores do not qualify for this deduction. Look for more information on the IRS website.

Recovering from Identity Theft

Identity theft can be prevented in many ways, but if you are a victim, there are a few ways to recover your information and ease the financial burden. Once you discover that your identity has been stolen, contact your local law enforcement, freeze your credit, and place a fraud alert on all accounts. Once all necessary parties have been contacted, review your credit and debit charges for anything fraudulent and report them to your financial institutions. Work to handle your disputes as quickly as possible to recover any changes to your credit score. Next, change login information on all websites that contain your personal information. Protecting your data is essential, and identity theft is likely to occur through an internet security breach. Stay on top of your credit reports and banking information for the next few months after the theft occurs. You will want to contact the credit bureaus and banks to ensure all fraudulent charges have been removed and any new accounts will be rejected as fraud.