Question

I used form 2555 for wages and self-employed income earned living out of US. Turbotax includes Schedule SE. my return is showing my SE tax as due when it should be zero.

Forum|Forum|7 years ago
June 1, 2019
1 reply
0 views

No text available

TurboTax Deluxe Windows

Employee

The self-employment tax applies to all self-employed income worldwide. The foreign earned income exclusion (form 2555) only applies to income tax, not self-employment tax.
The only option for exempting foreign self-employment from the SE tax is if your self-employment activity is covered under the social security system of another country and that country has a totalization agreement with the US. You can read more about totalization agreements in the last section of this IRS page:

https://www.irs.gov/individuals/international-taxpayers/self-employment-tax-for-businesses-abroad