I work for a Foreign Embassy, and we are not allowed to participate in US Social Security System. How to do the Social Sec deduction?

[forthefirsttime]

So I am in a similar situation. Working for an embassy of my native country with whom the US has a tax treaty and on a green card myself. I have received a 1099 MISC but cannot figure out how to report it without Turbotax estimating tax payments on it. Where should I enter this 1099 MISC without getting taxed on it?

[alonching]

Hi! I job a job offer from a foreign embassy and I am a Philippine citizen with green card. I just want to know if I am exempt with taxes. Thank you!

[MaryK1 · Accepted solution]

If you are an employee of a foreign government (including foreign municipalities) your wages are exempt from U.S. income tax by a provision in a tax treaty or consular convention between the United States and their country, or meeting the requirements of U.S. tax law

Often the exemption is limited to the income of persons who also are nationals of the foreign country involved.

If you are a green card holder employed by a foreign government or international organization, you are not subject to self-employment taxes and may not voluntarily participate in the U.S. social security system.

For more information, see
How to Report Wage Income Paid by Foreign Governments or International Organizations

[maximusmatte]

Thank You dearly for answer and the link to IRS. I'm not US Citizen, so I wont pay the self-employment tax (because it includes SocialSecurity, and Im not allowed to participate or pay the SocialSecurity part).

[MaryK1]

From the list on the left side of the screen, under 2017 Taxes, click Federal.  If you have a W2 listed, click on Edit/Add OR from the All Income list, Show More under Wages and Salary then Start

If you have the W2 listed, click Edit and continue through the information- you should see it or Add a W2 then enter the info and click Continue-- You should see the question "Do this uncommon..." after you enter the W2 info--

If you do NOT, add a comment to this post.

[maximusmatte]

The Embassy doesn't issue W2 nor 1099 forms. Unfortunately Due to the bilateral agreement between the countries, the locally employed are not allowed to pay-participate in US Social Security System. I just have a certificate with information what I was paid  2017. I'm a green card holder.

[MaryK1]

I am going to update my answer above because as a green card holder, you do not have to pay the FICA.  See above.

[maximusmatte]

Thank You so much.

[MaryK1]

Are you from the nation whose embassy you are working at?

[maximusmatte]

Yes I am. But I live here in US.

[MaryK1]

Which country?  I can check if tax treaty applies OR you can pay the income tax only but not the FICA.  You will not be able to pay this for working at the embassy.

[maximusmatte]

Thank You! Sweden. The bilateral agreement is fantastic for all other Swedish people working in US, the exception is, if you work for the Swedish Embassy, then you are not allowed to pay to the US social security system nor participate..

[MaryK1]

Will you be able to check post this tomorrow?  I want to get help to make sure I am 100% correct on how to report.

[maximusmatte]

Absolutely! Thank You so much for all your help! I wish you a wonderful continue of your weekend! Best