Job Discussion Forums

Noelle · Joined: 26 Mar 2005 Posts: 361 Location: USA

Hey everyone...

just a quick question for the American teachers...

I worked in China a few years back and didn't pay any U.S. income or social security tax on my Chinese income. Something about having not worked outside the U.S. long enough (4 months) and having to pay for my own plane ticket to and from China (due to breaking a contract) and so I was actually given a an IRS refund that year.

Now I am paying into social security on my Korean income from last year because it was not withheld by my employer(naturally). I don't have to pay federal income tax but I do pay S.S. and it's quite a a heavy amount!

Has anyone else been through this after working in China for a full year?

gengrant · Posted: Wed Feb 14, 2007 1:58 pm Post subject:

if you work outside of the US, you can make up to 82,500 USD without paying any income tax, ss tax (FICA), or medicaid. The catch is that you must have lived and worked outside of the country for 2/3 or more of the year (8 months). regardless of where you live and/or where your money comes from, if you are a US citizen, you MUST file a Federal tax return. Failing to do this will put you in DEEP DOO-DOO with the IRS peeps. check out www.irs.gov for more information about living abroad and filing taxes.

best to you.

HunanForeignGuy · Joined: 05 Jan 2006 Posts: 989 Location: Shanghai, PRC

If you wish to pay into the Social Security system, and you are a United States citizen working and living overseas, here is how :

If the total of your net earnings from self-employment from all businesses is $400 or more, you must pay into the Social Security and Medicare systems by filing Form 1040, Schedule SE, Self-Employment Tax. Self-Employment tax consists of the Old-Age, Survivors, and Disability Insurance (social security) and the Hospital Insurance (Medicare) taxes.

Noelle · Joined: 26 Mar 2005 Posts: 361 Location: USA

The point is that I DON'T want to pay into social security. I'll never see that money again...

I was told that I had to and that there was no option. If I don't pay it, it's considered tax evasion. I have a hard time believing everyone is evading their social security tax except for me.

Again... has any paid U.S. SOCIAL SECURITY tax on Chinese income? Unwillingly, I might add?

jeffinflorida · Posted: Thu Feb 15, 2007 8:55 am Post subject:

Noelle · Joined: 26 Mar 2005 Posts: 361 Location: USA

Thanks

I wish so much that I'd let someone else prepare my taxes last year. Now I'm stuck paying this exhorbitant S.S. tax because I paid it last year and the IRS will audit me if I try to file differently this time!

I didn't make enough in China to make a difference but Americans considering teaching in Korea... BEWARE of the U.S. Social Security tax on your foreign earnings..