TurboTax added FICA Taxes with 1099-MISC

[Dave0823]

Dual-Citizen living in Canada and working as Sole Proprietor for a US Company remotely in Canada.  I have a "Certificate of Coverage" document from the CRA stating I am already paying Canada Pension Plan taxes and therefore am not required to pay FICA taxes.  However, TurboTax calculates the additional FICA tax owing to the IRS as it was not withheld from my 1099-MISC.  How do I remove the FICA tax payment from my return?

Thanks, Dave

[Anonymous · Accepted solution]

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. 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
or 1040-SR), line 4.

unfortunately TT will complete schedule SE so you have to proceed as follows

there is an se adj worksheet. to get to it type se tax adj in search box and enter net income from schedule c on line 7 in part 2.

you will have to paper file your return because there is no way to include the CRA form with an e-filed return.  when paper filing be sure to exclude the SE schedule,