US -> Korea Tax Question

[blundercreek]

Hey all, I moved from the US to Korea in late July 2022. I have a few questions about filing my US taxes.

1. Because I’m not eligible for the FEIE, I should be filing the Foreign Tax Credit, correct?
2. I have absolutely nothing interesting about my tax situation besides living overseas - no dependents, no assets, just some student loan debt and a couple of regular US bank accounts. Would I be okay just filling online through some sort of system like H&R Block? I don’t want to spend a ton of money if I don’t have to.
3. Are there any other forms I should be aware of filing? I’ve been under the FBAR threshold. I think my boss mentioned something about a health care exemption form.

Thank you in advance!

 

[klkent]

@blundercreek

Because I’m not eligible for the FEIE, I should be filing the Foreign Tax Credit, correct?

Why aren't you eligible for the FEIE? (The FTC may [or may not] be better for you, but I'm wondering why you're ineligible.)

 

[blundercreek]

@klkent I was under the impression that you had to be living outside of the US for 330 days or something like that to qualify for the FEIE.

 

[klkent]

@blundercreek Yes, 330 days in a 12-month period. That 12-month period doesn't have to be a calendar year. Late Jul 2022 to late Jul 2023, for example, works.

 

[blundercreek]

@klkent Ohhhh, so it would be possible to file at a later date. I see. Thank you for the clarification!

 

[patriotpaladin]

@blundercreek Yep. File for an automatic extension and then file the return once you meet the 330 day limit. (If you’re likely to owe on the money you earned in the first half of the year, you can pay some money with the extension so you don’t get hit with interest and penalties on that - the extension gives you more time to file but not to pay)

Alternately depending on your residency status in Korea you might qualify for the FEIE on the basis of being a “bona fide resident” which doesn’t have the 330 day requirement.

Healthcare exemption would only apply for a state tax return (I know California and MA have individual mandates for example) - if that’s relevant, just follow the instructions to indicate you were living abroad in the relevant months)

 

[eee27]

@blundercreek If you're self-employed (e.g. working as a contractor or similar) you might need to look into a Social Security exemption.

You should be able to use IRS Free File with one of the partner services if your income is under the threshold - https://www.irs.gov/filing/free-file-do-your-federal-taxes-for-free

 

[patriotpaladin]

@eee27 I used myfreetaxes.com to file with FEIE in 2020, I assume it still works