Americans Only- Tax-free paycheck in Korea: IRS Form 8802 / Residency Certification
When you give this document to your employer you will not pay any payroll taxes. Here are answers to some of the most common questions about this document.
What is form 8802? And what is 6166?
I just want to be clear by saying form 8802 is NOT the residency certification. The IRS-8802 is the application for the residency certification. The IRS-6166 is the actual Residency Certification and you receive this after applying on the IRS-8802 form. The IRS-6166 should be given to your employer and this document proves you are a tax-paying American citizen.
What does this form to do for me?
This form allows you to be tax-exempt in Korea, meaning they wonâ€™t take any money out of your paycheck for taxes.
Why is it important?
Many jobs assume that you are diligent enough to fill out this form for yourself and turn the document in to the school. Generally, your school wonâ€™t charge you anything for taxes from the start assuming you will get this form to them. If you donâ€™t bring this to them before the start of the New Year, then you will end up owing a lot of money in back taxes.
How Do I Complete IRS Form 8802 or Residency Form?
I have included some basic steps to completing the IRS 8802 Form. I would like to say, before you read this, I am no tax expert and nor am I a member of the IRS. So please do not ask me or provide me with any personal information regarding this document. These steps worked for me each and every time I needed to complete the IRS 8802 Form.
1.Â Â Â Â Pay for the form
Pay the IRS for the form and be sure to write down the confirmation numbers. https://www.pay.gov/paygov/forms/formInstance.html?agencyFormId=12164322
2.Â Â Â Â Download Form 8802
3.Â Â Â Â I have two confirmation numbers on my receipt, which do I put?
When I first filled out this form I spend an hour on the phone with IRS. The IRS woman on the phone said put down both numbers just to be sure. I did and received my 6166.
4.Â Â Â Â What is my tax ID?
Your tax ID is your social security number.
5.Â Â Â Â What is an appointee?
This is left blank, unless you want your Residency Certification mailed to somebody other than yourself.
6.Â Â Â Â The â€˜calendar period on which the certification will be basedâ€™ on line 7.
The residency certification will prove that you were a citizen of the country for a specific year. For example, between January 1st of 2008 to December 31st of 2008 you were a citizen of America. This question is asking, â€œWhich tax year do you want to use for your certification?â€ You can use almost any year you would like, but just make sure it is a year you have filed taxes for.For example, if it is January 1st 2010. You have not yet filed your taxes for 2009. So you would put the year 2008 on line 7.Â
7.Â Â Â Â What is the tax period on line 8?
You wonâ€™t want to enter the most current year in this line because most likely you have filed taxes yet for that year. Technically, you could put any year in which you paid taxes. I would match that year to the same as you put on line 7. But in this case the number 12 is added for December.Â (i.e. 200812)
- Example 1, if it is currently November 2010. Most people wonâ€™t pay their 2010 taxes until sometime between January 2011 and April 2011. The IRS canâ€™t verify you are a citizen based on the 2010 taxes they havenâ€™t yet received. If it were currently November 2010 and I was filling out this form, then I would put the year 200912 on line 7.
- Example 2, if it is currently January 1st 2011. Most people havenâ€™t paid their 2010 taxes yet. Again the IRS canâ€™t verify youâ€™re a citizen based on the 2010 taxes it hasnâ€™t yet received. In this case I would put 200912 on line 7.
- Example 3, if it is currently May 1st 2012. Most people at this time have paid their taxes for the previous year.Â In this case the IRS can verify you based on your 2011 tax returns. So here I would put 201112.
8.Â Â Â Â What is the purpose?
Check â€˜otherâ€™ and write down foreign employment if your intention is to be an ESL teacher in Korea.
9.Â Â Â Â Penalties of Perjury?
I left this blank because I had no additional comments and I didnâ€™t add any attachments
10.Â Â Mail the 8802 form to the IRS
Please note the IRS has two different mailing addresses for the 8802 form. If you paid with an e-payment then there is a different address than those who paid by check. Because mailing addresses change, I wonâ€™t include that in this book, you must go to the IRS link I provide below. It states this in the instructions, read carefully!
Still Have Questions?
If any questions went unanswered you can look at the IRS instructions. Although, the directions can be extremely confusing. If you would like to look at the IRS website follow this link Instructions to Form 8802 . Here you can find the two separate mailing addresses to mail the form to the IRS. If you found this information helpful, you can access more resources about teaching in korea by registering and contributing to our ESL community.