Last updated 2024.03.22
Taxes
Note: Neither KAEC nor IIE staff members are permitted to give tax advice. If you have questions regarding your tax liability, please contact the IRS directly, or consult a tax professional.
U.S. Taxes
By law, Fulbright grantees must file U.S. taxes while in South Korea. For more information regarding this, visit the Internal Revenue Service's webpage on Fulbright grants.
Like IIE and the U.S. Department of State, KAEC is not required to withhold taxes from grant payments, and, as a binational commission, KAEC does not issue a 1099 or W2 as it is a non-US entity. However, normally, by mid-March, KAEC will provide a statement itemizing all benefits received in Korean currency and U.S. dollars under the Fulbright award, which statement may be filed with a tax return.
If you need an estimate of the benefits you have received prior to KAEC issuing your statement, please use your award authorization document and/or bank deposit statements to approximate your grant payments.
Like IIE and the U.S. Department of State, KAEC is not required to withhold taxes from grant payments, and, as a binational commission, KAEC does not issue a 1099 or W2 as it is a non-US entity. However, normally, by mid-March, KAEC will provide a statement itemizing all benefits received in Korean currency and U.S. dollars under the Fulbright award, which statement may be filed with a tax return.
If you need an estimate of the benefits you have received prior to KAEC issuing your statement, please use your award authorization document and/or bank deposit statements to approximate your grant payments.
Korean Taxes
Fulbright grantees to Korea are exempt from paying Korean income tax on grants up to two years in length.
In most instances, grantees are paid directly by Fulbright Korea. However, teaching/research or distinguished scholar grantees may also receive lecturing fees through their host affiliate.
Lecturing fees from host affiliates to teaching/research grantees are generally low enough to avoid issues regarding Korean taxes (i.e., the tax assessed is less than the cost of applying for tax exemption). For Distinguished Scholars in particular, though, to qualify for Korean tax-exempt status for the grant year, the Distinguished Scholar's host affiliate (i.e., Yonsei) will request submission of the Certification of U.S. Tax Residency (IRS Form 6166). There is an $85 "user fee" for obtaining the IRS Form 6166.
In order to obtain an IRS 6166 Form, Distinguished Scholars must submit an IRS Form 8802 Application for United States Residency Certification. The instructions for IRS Form 8802 are located on the IRS website.
Distinguished scholar grantees should either bring the original IRS Form 6166 with them to Korea or arrange to have the original sent to them in Korea if it arrives at their U.S. address after their departure.
Please read and follow all instructions from the IRS. Distinguished Scholars should also note the following:
In most instances, grantees are paid directly by Fulbright Korea. However, teaching/research or distinguished scholar grantees may also receive lecturing fees through their host affiliate.
Lecturing fees from host affiliates to teaching/research grantees are generally low enough to avoid issues regarding Korean taxes (i.e., the tax assessed is less than the cost of applying for tax exemption). For Distinguished Scholars in particular, though, to qualify for Korean tax-exempt status for the grant year, the Distinguished Scholar's host affiliate (i.e., Yonsei) will request submission of the Certification of U.S. Tax Residency (IRS Form 6166). There is an $85 "user fee" for obtaining the IRS Form 6166.
In order to obtain an IRS 6166 Form, Distinguished Scholars must submit an IRS Form 8802 Application for United States Residency Certification. The instructions for IRS Form 8802 are located on the IRS website.
Distinguished scholar grantees should either bring the original IRS Form 6166 with them to Korea or arrange to have the original sent to them in Korea if it arrives at their U.S. address after their departure.
Please read and follow all instructions from the IRS. Distinguished Scholars should also note the following:
- The IRS will not accept an IRS Form 8802 application for a tax year unless it is postmarked for December 1 or later of the year prior. (So, for example, for the 2024 tax year, the application must be submitted on or after December 1, 2023.)
- You should pay the user fee electronically and attach a copy of the receipt for your IRS Form 8802 application to your application.
- You can have the IRS send your Form 6166 to a U.S. address or to a foreign address. As it is uncertain how long the IRS form may take to process, you may wish to have the form sent to a proxy/appointee’s address (i.e., a friend or family member who can send/scan the completed form to you in Korea) OR to Fulbright Korea's address in Seoul.
- Note: The IRS does not provide a tracking number when mailing the Form 6166. So, if the form is lost in the mail, there is no way for you to receive another copy without reapplying. Because of this, we recommend sending your IRS Form 6166 to a proxy/appointee in the U.S. who can then forward it to you. That being said, if you do not have a reliable proxy/appointee, you may utilize KAEC’s address.