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Which version of desktop turbotax do I need to remove SS tax from my return? (totalization agreement)

Hi there, I'm trying remove the social security tax on my retune (totalization agreement), as explained by @DianeW777 . Which version of the CD/desktop turbotax do I need for this? Is the basic one good enough or do I need the "home and business" version? 

Also

When I delete the schedule SE on the online portal it just won't go, is this why I need the desktop version? 

Many thanks!

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rjs
Level 15
Level 15

Which version of desktop turbotax do I need to remove SS tax from my return? (totalization agreement)

TurboTax doesn't really handle this situation, but there is a way handle it using forms mode in the desktop software. You will not be able to e-file your U.S. tax return. You'll have to print it and file it by mail.


Go to forms mode and open the Schedule SE Adjustments Worksheet. In part II of the worksheet, enter on line 7 the amount of your self-employment income (probably the same amount that's on line 1a). This will make line 8 zero, remove Schedule SE from your tax return, and make Schedule 2 line 4 zero, thus eliminating the self-employment tax. (The empty Schedule SE will still be in the list of forms in forms mode, but it will not print as part of your tax return.)


Finish your tax return and print it for filing. On Schedule 2, on the dotted line on line 4, write "Exempt, see attached statement." (Since you have removed the self-employment tax, you might not have any other entries on Schedule 2, in which case it will not be included in your tax return. If that happens, open Schedule 2 in forms mode, print a blank copy, and write the notation on it. Include it in your tax return after Schedule 1, or after Form 1040 if you do not have Schedule 1.)


Attach the required "statement from the appropriate agency of the foreign country verifying that your self-employment income is subject to social security coverage in that country" after all the IRS forms and schedules. Don't forget to sign Form 1040 before you mail the tax return.


DianeW777 has posted over 1,800 messages. If you have further questions, it might be helpful if you include a link to the specific message you are referring to instead of a link to her profile, which lists all 1,800+ messages.

 

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10 Replies

Which version of desktop turbotax do I need to remove SS tax from my return? (totalization agreement)

If you are a self-employed US citizen living in a foreign country and paying social security taxes to that country, then you would go into the desktop version Home and Business   Go to forms mode and change the amount of tax on the SE schedule to zero.  Overwriting that value will make your return not eligible to e-file and you will have to print and mail your return.  Make sure you keep records of the foreign social security taxes that you paid with your other tax records.

Which version of desktop turbotax do I need to remove SS tax from my return? (totalization agreement)

SE form would need to be overridden which will prevent e-filing. instructions for FORM SE state the following.

If your self-employment income is exempt from SE tax, you should get a statement from the appropriate agency
of the foreign country verifying that your self-employment income is subject to social security coverage in that country. If the foreign country won’t issue the statement, contact the SSA Office of International Programs. Don’t complete Schedule SE. Instead, attach a copy of the statement to Form 1040 or Form 1040-SR and enter “Exempt, see attached statement” on Schedule 2 (Form 1040), line 4.

 

Without that statement, it is likely that you will get a bill from the IRS for  SE taxes. 

rjs
Level 15
Level 15

Which version of desktop turbotax do I need to remove SS tax from my return? (totalization agreement)

TurboTax doesn't really handle this situation, but there is a way handle it using forms mode in the desktop software. You will not be able to e-file your U.S. tax return. You'll have to print it and file it by mail.


Go to forms mode and open the Schedule SE Adjustments Worksheet. In part II of the worksheet, enter on line 7 the amount of your self-employment income (probably the same amount that's on line 1a). This will make line 8 zero, remove Schedule SE from your tax return, and make Schedule 2 line 4 zero, thus eliminating the self-employment tax. (The empty Schedule SE will still be in the list of forms in forms mode, but it will not print as part of your tax return.)


Finish your tax return and print it for filing. On Schedule 2, on the dotted line on line 4, write "Exempt, see attached statement." (Since you have removed the self-employment tax, you might not have any other entries on Schedule 2, in which case it will not be included in your tax return. If that happens, open Schedule 2 in forms mode, print a blank copy, and write the notation on it. Include it in your tax return after Schedule 1, or after Form 1040 if you do not have Schedule 1.)


Attach the required "statement from the appropriate agency of the foreign country verifying that your self-employment income is subject to social security coverage in that country" after all the IRS forms and schedules. Don't forget to sign Form 1040 before you mail the tax return.


DianeW777 has posted over 1,800 messages. If you have further questions, it might be helpful if you include a link to the specific message you are referring to instead of a link to her profile, which lists all 1,800+ messages.

 

Which version of desktop turbotax do I need to remove SS tax from my return? (totalization agreement)

Thank you so much! But it seems like I can't buy the software from the uk, is this normal? (it only suggest US or Canada) 

Many thanks 

Which version of desktop turbotax do I need to remove SS tax from my return? (totalization agreement)

Thank you so much for your reply! So when I input my amount of self-employment income on line 7 of SE Adjustments Worksheet, it does give 0 for Line 8, but automatically deletes schedule 2 and schedule SE-T. Is this what should happen? 

 

Also, I tried to print a blank copy of schedule 2 but can't seem to make modification on it. Is there a way to do this? 

 

Many thanks 

rjs
Level 15
Level 15

Which version of desktop turbotax do I need to remove SS tax from my return? (totalization agreement)

Yes, that's what should happen.


You have to print the blank Schedule 2 on paper, then write the notation by hand on the printed copy.

 

Which version of desktop turbotax do I need to remove SS tax from my return? (totalization agreement)

Great thanks! I managed to open a blank schedule 2, but can't print it on it's own. It only let's me print the forms of my return.. Any advice? Many thanks 

rjs
Level 15
Level 15

Which version of desktop turbotax do I need to remove SS tax from my return? (totalization agreement)

With Schedule 2 open in forms mode, click the Print button at the bottom, or click Print Center at the top. The Form Selection window should open with Schedule 2 selected. Then preview it or save it as a PDF and print the PDF.


If you still can't get that to work, just download the blank form from the IRS web site and print that. Here's a link to it.


Schedule 2


Are you using Windows or a Mac? My instructions are for Windows. It might be a little different in the Mac software.

 

Which version of desktop turbotax do I need to remove SS tax from my return? (totalization agreement)

Thanks, yes found it on IRS website! I'm using Mac, does this change anything for the previous instructions you gave me? or just for printing? Thanks 

rjs
Level 15
Level 15

Which version of desktop turbotax do I need to remove SS tax from my return? (totalization agreement)

Just the printing.

 

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