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Expatriate Tax Returns

Expatriates

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.

The New and Improved Where’s My Refund Tool

Live stress-free with IRS’s new and improved Where’s My Refund tool. The update includes access for taxpayers to view their refunds from previous years. Taxpayers can now view refunds dating back to 2019! The only information needed to access the Where’s My Refund tool is your SSN (or ITIN), anticipated refund amount, and the taxpayer’s filing status.

Taxpayers can determine precisely what the status of their refund is by using this new tool. This is very beneficial for budgeting and planning purposes. The refund status will either be in received, approved or sent mode. This feature essentially gives users a forecast of where their money stands. Once the refund is filed, taxpayers can begin seeing their refund status 24 hours after filing electronically, 3-4 days after filing previous years electronically, and four weeks after mailing. Information about your refund has never been easier to access and is at your fingertips. Visit www.irs.gov for more information.

Generosity Extended: The IRS Mileage Rate

The IRS is looking out for American taxpayers. For the remainder of 2022, the optional standard mileage rate has been increased by the IRS. For the rest of the year, taxpayers can receive reimbursement for using their automobiles for business travel and other similar purposes. Once mileage is calculated, drivers can determine what they’ll receive for their business travel expenses.

Taxpayers driving for business trips have a new reason to be excited! The standard mileage rate, once initiated, will be 62.5 cents per mile. The updated rate for moving (sector for active-duty people in the military) and medical reimbursement is 22 cents per mile. Both rates were increased by 4 cents per mile. These increases will be put in place on July 1, 2022, and will last for the rest of 2022. The only rate that did not receive an increase is the rate for charitable organizations, which remains at 14 cents per mile.

2022 has introduced all kinds of challenges worldwide. One of the main challenges America has been facing this year is inflated gas prices. The American average price for fuel is $4-$5 per gallon. Nationwide, all drivers must deal with the inflated prices to be on the road.

Out of generosity, the IRS adjusted the optional standard mileage rate for taxpayers. According to Chuck Rettig, the IRS Commissioner, the IRS made this increase to shine a light on the challenging circumstance of high gas prices. This change is unique because the IRS consistently updates these rates yearly. Any previous business travel costs should be calculated using the former rates before the increase. This information can be found in Notice 2022-03.

The IRS is not only generous but also flexible. If taxpayers would like an alternative to the business travel reimbursement, they can calculate the vehicle cost instead of the optional standard mileage rates. If you have questions, call us or visit www.irs.gov for more information.

Storing Tax Related Documents

Keeping your tax-related documents is extremely important in the digital age. If you are storing your tax documentation on a computer, be sure that the computer itself is protected. Use lengthy and unique passwords and restrict access to only those necessary. We recommend changing your passwords frequently for maximum security. Additionally, consider keeping the information on an external hard drive should your computer crash. When accessing your tax files or filing your taxes, be sure you do so over a secure network. Avoid using public wi-fi as those around you may be able to access your information more easily. If you are keeping paper copies of your tax information, ensure they are stored safely and securely. The IRS recommends storing the information under lock and key, and ideally in a waterproof container. The IRS generally recommends keeping your tax return documents for three years. After that time, shred any paper documentation and permanently erase the files from your computer. If you are getting rid of an old computer entirely, ensure that tax and other personal data have been removed. We are constantly working to stay on top of the latest safety and security recommendations, and you can trust that your information is safe in our hands.

Tax Related Identity Theft

Identity theft occurs when a piece of your personal information is stolen and used to commit fraud. If your data is accessed, it could be used to open new accounts, make unauthorized purchases, or file taxes for a fraudulent refund. The IRS may reach out to you via mail should there be any suspicious activity related to your Social Security Number. A few other instances may lead you to believe that your identity was compromised. If you attempt to file your taxes and encounter an error that you have already made, you should contact the IRS right away.
In most cases, you will receive some mail notification from the IRS with information that you did not request. This communication is a good indication of identity theft. If it is confirmed that your identity has been compromised, no matter the cause, the IRS recommends IDentityTheft.gov to report the information and work to get your identity back. As tax professionals, if the information breach occurs on our end, we will work with you to ensure your data is retrieved and safe. To protect yourself from tax-related identity theft, ensure that you are using secure methods of communication to file your taxes. Protect your personal information at all times, do not give out your Social Security Number unless necessary.