Question about Foreign Wages and Social Security

[WhiteOleander]

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?

[Koss]

No--

not if it's wages.

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

BMK

[WhiteOleander]

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.