4 ms·
> you apply for FEIE and won't have to pay federal income tax as a US citizen. The Foreign Earned Income Exclusion only applies to the first $107,600 you earn
by BrentOzar 6y ago
> you apply for FEIE and won't have to pay federal income tax as a US citizen.
The Foreign Earned Income Exclusion only applies to the first $107,600 you earn in 2020. You still have to pay taxes on the rest.
- cpursley 6y agoAnd you're still liable for social security.
- seanmcdirmid 6y agoNo, you only pay SS if you are resident.
- cpursley 6y agoFor most situations, you're liable: https://brighttax.com/blog/do-us-expats-pay-medicare-tax/ https://brighttax.com/blog/do-us-expats-pay-medicare-tax/ https://www.irs.gov/individuals/international-taxpayers/social-security-tax-consequences-of-working-abroad https://www.irs.gov/individuals/international-taxpayers/soci...
- seanmcdirmid 6y agoNo, not even close: most expats do not pay social security taxes abroad. If you work for the USA embassy, you pay SS tax, but if you work for Microsoft China, you do not (you do, however, pay Chinese SS of course). In particular, see https://www.hrblock.com/expat-tax-preparation/resource-center/income/foreign/social-security-self-employment-taxes-expats/ https://www.hrblock.com/expat-tax-preparation/resource-cente... > If you are working for a foreign employer who has no requirement to withhold U.S. social security, you have no obligation to remit U.S. social security taxes on your earnings and in fact, are prohibited from making such voluntary contributions to the U.S. Social Security System. Almost every US company has it setup that you are going to be working for a foreign employer, not a US one.
- seanmcdirmid 6y agoAfter your foreign earned income exclusion is exhausted, you can deduct your foreign taxes, at least. In low tax but high COL places such as Singapore and HK, you also have the housing deduction to help out.