Question about Foreign Wages and Social Security

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  • WhiteOleander
    Senior Member
    • Jun 2005
    • 1370

    #1

    Question about Foreign Wages and Social Security

    Taxpayer had been living in Mex. since 1996 and had been filing as a Bona Fide Citizen form 2555. He is a US citizen. He has now moved to the US and will live here. He will continue to work for the Mexican company from the US. He manages the company in Mex. from the Internet and some travel.

    The company has no connection to the US and he files and pays Mex. taxes. Does he have to pay Social Security tax on the Mex wages since he is now in the US?

    Also, since he was a Bona Fide resident for the form 2555, can he claim the foreign tax exclusion for the 97 days he lived in Mex. in 2010 before he moved himself and family permanently to the US?
    You have the right to remain silent. Anything you say will be misquoted, then used against you.
  • Koss
    Senior Member
    • Jul 2005
    • 2256

    #2
    No--

    not if it's wages.

    It would be subject to self-employment tax if he were an independent contractor.

    BMK
    Burton M. Koss
    koss@usakoss.net

    ____________________________________
    The map is not the territory...
    and the instruction book is not the process.

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    • WhiteOleander
      Senior Member
      • Jun 2005
      • 1370

      #3
      Thank you very much. I thought I was understanding it correctly. but, there seems to be very little printed that clarifies that only the Self employment is subject to the SE tax, and not wages. This guy will not have anything paid into Soc. Sec. at all. He says he is fine with that.
      You have the right to remain silent. Anything you say will be misquoted, then used against you.

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