I am filing for 2018, but this will apply to 2019 and later years as well. I am using the desktop app.
I live in the UK year-round and have Self-Employment income. When I fill in my business income in TurboTax I am able to exclude it under Foreign Earned Income Exclusion but it still shows I owe SE tax of $4,522.
However, I am already paying the UK's National Insurance (aka "social security") on this income. Under the US-UK Social Security Agreement, I should not need to pay the US SE tax, as described under Part II Article 4.3 here: https://www.ssa.gov/international/Agreement_Texts/uk.html
My questions:
- Is my reading of the agreement/double taxation correct?
- How do I instruct TurboTax to reduce my SE tax owed to zero? Do I add a negative value under the Business section somewhere, perhaps under "Other income"?
- Are there any additional forms I need to include with my return when I mail it in? Perhaps one of these:
Form 8833
Form W-8BEN
Note: the UK only appears to provide a "certificate of coverage" for people covered under UK but working overseas, and for specific date ranges. I am the opposite; coming from the US and staying indefinitely. I do, however, have proof of my UK National Insurance number and contributions per-year.
