Foreign Income Reporting

If you are a U.S. citizen, green card holder, or tax resident, you must report your worldwide income — including income earned in Korea.

This applies even if:

• The income was already taxed in Korea
• The income never entered the U.S.
• The income was earned before you moved
• The income came from Korean pensions, investments, or property

Foreign Income Reporting ensures that all Korean‑source income is properly reported on your U.S. tax return, coordinated with foreign tax credits, and aligned with treaty rules to avoid double taxation.

Clients often ask:

• “Do I need to report Korean salary or business income on my U.S. return”
• “How do I report Korean rental income”
• “What about dividends, interest, or capital gains from Korean accounts”
• “Do I report Korean pension or severance (퇴직금)”
• “How do I avoid paying tax twice on the same income”
• “What forms do I need — Schedule B, D, E, 1116, 2555”
• “What if I didn’t report foreign income in prior years”

These questions are extremely common — and the IRS expects full reporting.

We help you identify, calculate, and report all Korean‑source income accurately and efficiently.

✔ Salary & Employment Income

• Korean workdays vs U.S. workdays
• Remote work and cross‑border assignments
• Bonuses, stock compensation, and severance
• Treaty allocation for employment income

✔ Business & Self‑Employment Income

• Korean sole proprietorships
• Korean corporations or partnerships
• Permanent establishment considerations
• U.S. self‑employment tax implications

✔ Investment Income

• Korean interest and dividends
• Capital gains from Korean securities
• PFIC rules for Korean mutual funds (Form 8621)
• Treaty‑based reduced withholding rates

✔ Rental & Real Estate Income

• Korean rental properties
• Depreciation rules for foreign real estate
• Expense deductions and currency conversion
• Coordination with Korean tax paid

✔ Pension, Severance, and Retirement Income

• 국민연금 (NPS)
• IRP and private pensions
• Severance (퇴직금)
• U.S.–Korea treaty treatment

• ✔ Correcting Past Non‑Compliance
• Unreported foreign income
• Amended returns
• Reasonable cause statements
• Coordination with FBAR and FATCA corrections

Foreign income reporting must be accurate, consistent, and coordinated with your overall tax strategy.

• Precise classification: Each income type has its own rules
• Treaty‑aligned: We apply the U.S.–Korea tax treaty correctly
• FTC coordination: Income reporting and foreign tax credits must match
• Clear explanations: You understand what is being reported and why
• Confidential and secure: Sensitive financial data handled with care