DO I PAY INTO SS AND MEDICARE IF I WAS WORKING ABOAD?

If we do work for a association abroad for a reduced time duration (for usually a couple of months), do we compensate in to SS as well as medicare? Also, do we have to record a 2555 or since we do not encounter a unfamiliar income ostracism manners which we don’t?
Posted on July 16, 2009 at 8:16 pm by admin · Permalink
In: medicare · Tagged with: Aboad, Into, medicare, Working
In: medicare · Tagged with: Aboad, Into, medicare, Working
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on July 16, 2009 at 8:16 pm
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It depends, check with a real live tax adviser in the US there is tax advice given at the US Consulates and embassies as well.
on July 16, 2009 at 8:16 pm
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If you work for a company abroad for a short period, you can’t use Form 2555. If were required to pay taxes in the foreign country, then you will complete Form 1116 and get foreign tax credit on your tax return Form 1040.
If it is your self employment income or your independent contractor income then you will pay SE taxes (social security and medicare) and complete schedule SE (Form 1040). For more information on SE tax, read instructions to schedule SE.
on July 16, 2009 at 8:16 pm
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You pay SS and medicare if you worked abroad for a US company. The US company is obligated to make the deduction and submit the payments to the IRS. If you worked for a foreign company, you do not pay SS and medicare on that portion of your income.
whether you have to file form 2555 depends on your overall income tax situation. Read the form instructions. Someone more expert may be able to answer that question better.