Recently I made some money as a freelance real estate person. 1.) How should I pay into my social security account, and 2.) Since I live abroad, can I avoid making payments to medicare for something I will never use.?
2007-04-24 13:06:31 · 2 answers · asked by lesblane 2 in Business & Finance ➔ Taxes ➔ United States
You'd pay that the same way you would if you lived in the US. Assuming that you are a real estate agent, you'd file Schedule C to calculate your net income and Schedule SE to calculate your Self Employment tax.
Living abroad doesn't get you out of paying Social Security and Medicare taxes. As a US citizen or resident, you're taxed on your world wide income regardless of where you live. That includes SS and Med taxes.
If your profits are from buying and selling real estate, that could go on Schedule D and be treated as capital gains. That is unearned income and is not subject to Social Security or Medicare taxes. Of course, it doesn't get you any credits for SS and therefore little or no SS when you retire.
2007-04-24 13:22:43 · answer #1 · answered by Bostonian In MO 7 · 0⤊ 0⤋
Legally no, you're required via regulation to pay into it. You'll pay self-employment tax, that's social protection and medicare, if you are making over $four hundred for the 12 months as an unbiased contractor.
2016-09-05 22:53:09 · answer #2 · answered by ? 4 · 0⤊ 0⤋