Understanding Dual Contributions: Korean National Pension vs. U.S. FICA

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Understanding Dual Contributions: Korean National Pension vs. U.S. FICA Navigating social security systems across borders can be confusing—especially for employees working between Korea and the U.S. A recurring question is: Can someone pay into both Korea’s National Pension and U.S. FICA (Social Security and Medicare taxes) at the same time—and what happens if they do? This post breaks down how the Korea–U.S. Totalization Agreement works, what “coverage” means, and the consequences of dual contributions. 1. The Totalization Agreement at a Glance πŸ‡°πŸ‡·πŸ‡ΊπŸ‡Έ Since 2001, the Korea–U.S. Totalization Agreement has coordinated social security coverage between the two countries. Its primary goal is to: Prevent double taxation of social security contributions on the same income during the same time period Protect future benefit rights for cross-border workers Key principles: At any given time, only one country’s social security system applies to your wages C...
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πŸ“… Day 6: What’s Actually Deductible When You Eat Out for Business (2025 Edition)

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πŸ“… Day 6: What’s Actually Deductible When You Eat Out for Business (2025 Edition)

Business meals can be a legit tax deduction — but only if you follow the rules. And no, your solo sushi craving doesn’t count (unless your client’s name is “Tax Return”).

Let’s break it down.

🍽️ What Counts as a Deductible Business Meal?

In 2025, most business meals are 50% deductible, but some are 100%. Here’s how to tell the difference:

✅ 50% Deductible

  • Meals with clients or prospects (as long as business is discussed and you’re present)
  • Meals while traveling for business
  • Team lunches or working meals (not lavish)

✅ 100% Deductible

  • Company-wide events (like holiday parties)
  • Meals provided for the employer’s convenience (e.g., working late at the office)
  • Promotional events open to the public (like a launch party with snacks)

🚫 Not Deductible

  • Entertainment (concerts, sports games — even if business is discussed)
  • Meals that are overly extravagant
  • Personal meals or groceries

🧾 How to Document It (Without Losing Your Mind)

  • Keep the receipt
  • Note the date, attendees, and business purpose
  • Use a “Meals & Entertainment” category in your tracker or accounting software

πŸ’‘ Pro Tip from a CPA
If you give event tickets as a gift and don’t attend, it might be deductible as a business gift (subject to the $25 limit). But if you go with them? It’s entertainment — and not deductible.

Coming up next: Day 7 – How to Hire Your Kid Legally- And Save Taxes.


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