Do I have to pay taxes in America on money I make while working overseas?

Question

I'm going to work in Korea for year and will be paying Korean taxes. Will I also be taxed for that money here in America?

Answer 1

You may qualify for the foreign earned income exclusion.  If not, the foreign tax credit will prevent double taxation.  See IRS Publication 54 for all the details.

Answer 2

No, as long as you make less then $80,000 and are outside the US for most of the year you are exempt from US Taxes. You still have to file a return. You must file a  form 2555 with your 1040 form by June 14th (you will get an automatic 2 month extension, though note if you owe taxes you still have to pay interest).

Answer 3

You will need to file a US tax return, since you are taxed on worldwide income.

Since you also paid taxes to another country, you can take a credit for those taxes against taxes you owe to the US.  So you are not taxed twice on the same income.

Alternately, if you qualify (you have to be in Korea a minimum amount of time), you may be able to exclude all or part of your income from US income taxes.  To do this, you file Form 2555 with your tax return.