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edward23
New Member

I live abroad and pay social security taxes to a country with a totalization agreement. How can I remove the self-employment tax listed on TurboTax?

I have a certificate of coverage and certificate of residency in Spain.
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2 Replies
JeffreyR77
Expert Alumni

I live abroad and pay social security taxes to a country with a totalization agreement. How can I remove the self-employment tax listed on TurboTax?

You can navigate in TurboTax Self-Employed to Federal, OtherTax Situations and select Self Employment-Tax.

 

On the Self-Employment Tax screen, select Yes, and on the No Self-Employment -Tax screen, select Make Adjustments.

 

On the Enter Income Adjustments screen, enter your foreign income subject to self-employment tax as a negative number in the Other SE Non Farm Income Profit (Loss) box.

 

You will also need to print and mail your 1040.  Write Exempt, see attached statement on line 57 of your Form 1040 and attach your exemption certification.

 

See this post on this topic by TaxGuyBill: Avoiding Double Taxation with Totalization Agreement

heather1
New Member

I live abroad and pay social security taxes to a country with a totalization agreement. How can I remove the self-employment tax listed on TurboTax?

Thank you for these instructions. They've helped me immensely! I really can't thank you enough.

 

One minor issue, when I print my return, there is no Line 57 on the 1040 form (or anywhere). Do you know where I can write "Exempt, see attached statement" for when I attach my Certificate of Coverage? Or how to somehow get that Line (or page or whatever is missing) to print?

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