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Old 11-18-2015, 09:08 AM
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Smile I get monthly income from my business in a foreign country

I am a business owner in the US and South Korea and I have been living in here for a long time.
But I do get monthly salary in Korea as well.
My employee in Korea has deposited my monthly salary in my bank account in Korea.

But now I want to change that I want to close out the bank account in Korea and wire transfer the monthly salary directly to my account in here (US).

I talked to my accountant in Korea and cleared that there will not be a problem in Korea if I pay tax right. I have been a non-resident in Korea and I will be paying taxes as it is.

The problem is that if my salary is wired transfer to my account here, will it be taxable again? So I am paying tax twice even if I pay tax in Korea already?

Thank you



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Old 11-18-2015, 01:03 PM
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Posts: 5,230
I am a business owner in the US and South Korea and I have been living in here for a long time.
But I do get monthly salary in Korea as well.
My employee in Korea has deposited my monthly salary in my bank account in Korea.

But now I want to change that I want to close out the bank account in Korea and wire transfer the monthly salary directly to my account in here (US).

I talked to my accountant in Korea and cleared that there will not be a problem in Korea if I pay tax right. I have been a non-resident in Korea and I will be paying taxes as it is.

The problem is that if my salary is wired transfer to my account here, will it be taxable again? =======>>>>>>>>>>>>As a US resident, either a US citizen or a green card holder, a permanent resident alien in US, you must report both US source and world wide income , in this case your salary income that you earned in S Korea, to IRS and your home state; however, since you paid taxes to Korean taxing authority in S Korea, you may claim the taxes [aid to S Korea on your US return by filing form 1116 and report it on 1040 line 48 for 2014 or by itemizing the taxes on Sch A of 1040 on line 8 . You may choose to take a deduction for foreign taxes paid instead of choosing a credit. In most cases, it is to your advantage to take foreign income taxes as a tax credit.So you are not subject to double taxation on your income that you earned in S Korea. Also, remember;you must file form td f 90.22-1 with the Treausry whenever you have an interest in, or signature authority over, a foreign financial account with a value over $10K any time during the calendar year. It makes no difference if the average amount in the account during the year is less than $10K or all the money is withdrawn by the end of the year. Say, you, as a US person, own foreign financial accounts a,b and cwith maximum account values of $300, $12K and $2K respectively. You are required to file an FBAR because the
aggregate value of the accounts is $14.3K. you must report foreign financial accounts a, b, and c on the
FBAR even though accounts a and c have maximum account values below $10K. , the FBAR must be filed by june 30ththe date by which all United States citizens must file a Foreign Bank Account Report FBAR, Form TD F 90-22.1, with the Department of the Treasury to report offshore bank accounts.
So I am paying tax twice even if I pay tax in Korea already? ===>>>>>>>> No as mentioned above.



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Old 11-18-2015, 10:51 PM
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Thank you very much for your information



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