Because you are paying SE tax to a country that the US has a Totalization Agreement, this is what you need to do:
- You need to go into the section called "Business Taxes",
- Then "Self Employment Tax",
- Then "Make Adjustments",
- Then for "Other SE Nonfarm Profit (Loss)", enter your business profit as a negative number.
After you
print your tax return, you then need to write "
Exempt, see attached statement" on Line 57 of your Form 1040, and
mail your tax return along with your certificate of exemption.
To establish that your self-employment income is subject only to foreign
social security taxes and is exempt from U.S. self-employment tax,
request a certificate of coverage from the appropriate agency of the
foreign country. If the foreign country will not issue the certificate,
you should request a statement that your income is not covered by the
U.S. social security system. Request it from the U.S. Social Security
Administration. Attach a photocopy of either statement to your Form
1040 each year you are exempt from U.S. self-employment tax. Also print
“Exempt, see attached statement” on the line for self-employment tax.
https://www.irs.gov/individuals/international-taxpayers/self-employment-tax-for-businesses-abroad
