FAQs
Q

Do I still owe U.S. Social Security or self-employment tax on Foreign Earned Income?

Q

Do I still owe U.S. Social Security or self-employment tax on Foreign Earned Income?

A

If you work as an employee outside the United States, U.S. Social Security and Medicare taxes usually aren't withheld from your salary. However, there are certain exceptions. (Ex: You work abroad for an American employer). Instead, your foreign employer might withhold Social Security taxes under that country's system.

Self-Employment Tax

If you're self-employed outside the U.S., you'll still owe self-employment tax on foreign earned income. This is true even if you're able to claim the foreign earned income exclusion. However, agreements between the United States and many foreign countries may prevent you from being subject to self-employment taxes in both countries.

File Your Expat Tax Return with H&R Block

Have more questions about qualifying for the Foreign Earned Income Exclusion? Ready to file? No matter how complicated your U.S. tax return is, there’s an Expat Tax Expert ready to help. Get started with Virtual Expat Tax Preparation from H&R Block Expat Tax Services.

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