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

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1 Best answer

Expert Alumni

Jan 30, 2024 5:37:41 AM

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

Expert Alumni

Jan 30, 2024 5:24:42 AM

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.

Level 2

Jan 30, 2024 5:27:13 AM

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

Expert Alumni

Jan 30, 2024 5:37:41 AM

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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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?