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Level 2
January 30, 2024
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As an employee of a foreign company working and living abroad do I need to pay into SS/MC in order for FEIE to apply?

I am working abroad for a foreign company and I am resident in a country with no bilateral ss/mc agreement with the USA.

I understand FEIE is going to be 126,500$ for 2024 (and hopefully continues to increase over the years), but do I need to pay into ss/mc for FEIE to apply? I was surprised by my CPA response whereas there is a specific page in the IRS website stating to the contrary, cit:

Employees of a foreign company working and living abroad 

    MinhT1Answer
    Alumni - Intuit
    January 30, 2024

    Foreign employers are not required to pay or withhold FICA taxes except in the cases specifically described on page 29 of this aren't.

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    3 replies

    Alumni - Intuit
    January 30, 2024

    You're correct.

     

    There is no need for a foreign employee working for a foreign employer to contribute to Social Security and Medicare to be eligible for the Foreign Earned Income Exclusion.

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    Level 2
    January 30, 2024

    Thank you, other than the link I posted is there additional guidance on the subject?

    MinhT1Answer
    Alumni - Intuit
    January 30, 2024

    Foreign employers are not required to pay or withhold FICA taxes except in the cases specifically described on page 29 of this aren't.

    **Say "Thanks" by clicking the thumb icon in a post. **Mark the post that answers your question by clicking on "Mark as Best Answer"