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Could you guys clarify something about the tax treaty between US and South Korea? I heard there's a "saving clause" that basically negates a lot of the benefits for US citizens. Is that true?
Yes, that's correct. Most US tax treaties contain a "saving clause" that allows the US to tax its citizens as if parts of the treaty don't exist. This means that as a US citizen, you can't use most treaty provisions to reduce your US tax liability. However, there are usually exceptions to the saving clause. For example, the treaty might still protect you from double taxation on Social Security benefits or certain pension income. But for regular employment income, you'll generally need to rely on the Foreign Earned Income Exclusion or Foreign Tax Credit rather than treaty provisions.
I went through almost the exact same situation when I was working in Seoul! The stress about potential border issues is real, but I can confirm you won't have problems entering the US. CBP doesn't check tax compliance during entry. That said, you definitely need to get compliant ASAP. I was about 5 years behind on filing when I finally dealt with it. The key things that helped me: 1. Used the Streamlined Filing Compliance Procedures - no penalties if your non-filing wasn't willful (sounds like your case) 2. Filed 3 years of back tax returns using Form 2555 for the Foreign Earned Income Exclusion 3. Filed 6 years of FBARs for my Korean bank accounts Since you've been paying Korean taxes, you'll likely owe little to nothing to the US thanks to the FEIE. The exclusion amount for 2024 is around $120,000, so unless you're earning significantly more than that, you should be covered. Don't put this off though - the longer you wait, the more complicated it gets. Start gathering your Korean tax documents and employment records now. You'll need them to prove your foreign residence and income for the exclusion.
This is incredibly helpful! I'm actually in a very similar situation - been in Tokyo for 3 years and just realized I should have been filing US taxes this whole time. Quick question about the Streamlined procedures: do you remember roughly how long the whole process took from start to finish? And did you need to get certified translations of your Korean tax documents, or were the originals sufficient for the IRS?
have you checked if theres a mail forwarding order active on your address? my friend had this happen and her refund check got sent to her old address and then redirected which added like 10 extra days.
I'm in a similar situation - my refund check was mailed on 3/13 according to my transcript and I'm still waiting too. From what I've been reading here and other forums, it seems like 7-10 business days is more realistic than the 5-7 the IRS website claims, especially with how inconsistent mail delivery has been lately. For what it's worth, I signed up for USPS Informed Delivery like someone else mentioned and it's been helpful to at least know what's coming each day. Takes some of the guesswork out of checking the mailbox constantly. Since yours was mailed Monday and it's only been 5 business days, I'd try to hang in there until at least next Friday before calling. I know it's stressful when you need the money for repairs - hopefully it shows up early next week!
This happened to me two years in a row! The first time it took exactly 11 days from the WMR update to receiving the check. The second time was 9 days. I was counting every penny because I had car repairs that couldn't wait. One thing I learned - if you deposit the check through an ATM or mobile app, many banks put a hold on government checks over a certain amount. I went inside the branch instead and they gave me immediate access to the first $1,500. Just something to consider if you need the money quickly!
Same thing happened to my sister last year! The IRS switched her direct deposit to paper check with no explanation. In her case, it turned out her bank had updated their routing procedures and was rejecting certain types of ACH transfers from government agencies. She called her bank first before calling the IRS and they confirmed they had rejected the deposit attempt. The paper check took exactly 12 days to arrive after the WMR status changed. She was able to track it through USPS Informed Delivery like someone else mentioned - super helpful for peace of mind! One tip: when you get the check, take a photo of both sides before depositing just in case there are any issues with mobile deposit. Government checks sometimes have different formatting that can cause hiccups with mobile apps.
Something important that nobody's mentioned yet - if you don't receive your check within 4 weeks of the date shown, you should contact the IRS immediately. Unlike regular refunds where they tell you to wait 6-8 weeks before inquiring, with checks they have a different protocol because of the possibility of theft or loss in the mail system. Also, if you move or change addresses frequently, these checks will NOT be forwarded by USPS even if you have mail forwarding set up - they'll be returned to the IRS instead.
Based on my experience and what I've seen from others here, your March 7th date means the IRS will issue/mail the check on or around that date, but you should realistically expect it to arrive 5-7 business days later - so probably around March 12-16th. Since you mentioned being on a fixed income and needing to plan accordingly, I'd suggest not counting on having access to those funds until at least March 14th to be safe. The 7-day timeframe you experienced with your last refund sounds pretty typical. Also, as someone else mentioned, definitely sign up for USPS Informed Delivery if you haven't already - it's free and will at least let you know when the check is actually in transit to your mailbox.
Javier Cruz
Look for ur cycle code once ur transcript shows up. Mine ends in 05 so I only update on Fridays
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Connor Gallagher
ā¢where do u find the cycle code?
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Javier Cruz
ā¢It'll be on the top right of ur account transcript once it generates. Last 2 digits matter
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Sadie Benitez
Same struggle here! š Filed electronically 10 days ago and still seeing N/A on my transcript. Based on what others are saying about the Friday update cycles, I'm gonna wait until this Friday to check again instead of my current hourly refresh habit lol. Really hoping to see some movement soon - this waiting game is brutal!
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