Self Employment Tax in Canada

Forum|Forum|3 years ago
April 29, 2023
1 reply
16 views

How do I exempt the Self Employment Tax for a US citizen Self-employed in Canada?

ProSeries Basic

This topic has been closed for replies.

Just-Lisa-Now-

Intuit Community Champion

Why wouldnt they be subject to SE taxes in the US?

If you are a self-employed U.S. citizen or resident, the rules for paying self-employment tax are generally the same whether you are living in the United States or abroad. The self-employment tax is a social security and Medicare tax on net earnings from self-employment.

https://www.irs.gov/individuals/international-taxpayers/self-employment-tax-for-businesses-abroad#:~:text=International%20Tax%20Gap%20Series,net%20earnings%20from%20self%2Demployment.

♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪

S

SGM TaxAuthor

Level 3

The US will not double tax its citizens working abroad for social security tax if those US citizens are paying a similar tax to the country they work in, namely Canada.

I know the law. My question is how to eliminate Schedule SE from Pro Series when completing Schedule C.

Just-Lisa-Now-

Intuit Community Champion

Sounds like youre asking about foreign tax credit, so that youre not double taxed you get a credit for taxes paid to the foreign government.

Any SE tax adjustments would be done on the SE worksheet.

♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪

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