Do you need to pay self employment tax on income earned by a green card holder who works for a foreign consulate general inside the United States?

[DDollar · Accepted solution]

No. You report as wages, but you do not pay Self-Employment tax.  According to the IRS:

Green Card Holders (Lawful Permanent Resident)

If you are a green card holder working for a foreign government or international organization, you generally must report your earnings as wages but are not subject to self-employment taxes on those earnings and may not voluntarily pay self-employment tax on those earnings.

[Edited 04-09-2019]

[mcgill2502]

Thank you for the answer, but I am asking for a green card holder not a US Citizen.   I have seen this exact page on the IRS.gov website, and if you look further down on the same page, you see the following paragraph which makes me think that you do not need to pay self employment tax. Definitely still need to pay federal tax though.

"Green Card Holders (Lawful Permanent Resident)

If you are a green card holder working for a foreign government or international organization, you generally must report your earnings as wages but are not subject to self-employment taxes on those earnings and may not voluntarily pay self-employment tax on those earnings."

Based on the above paragraph, I don't think you need to pay self employment tax but wanting to confirm with professionals before submitting since the software says you may need to pay.

Thank you again for the answer and any further clarification.

[DDollar]

I didn't catch the Green Card part.  Based on what is on IRS website, not only are you not required, you're not allowed to pay self-employment tax on it.

[mcgill2502]

Thanks again.  That is what I thought based on IRS website, but software was telling me I needed to.  I just wanted to make sure I wasn't missing anything.