Publication 54 - Tax Guide For U.s. Citizens And Resident Aliens Abord - 2011 Page 11
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44if your net earnings from self-employment are at
Guam, the Commonwealth of the Northern Mari-
least $400.
ana Islands, American Samoa, or the U.S. Virgin
3.
Islands, you must pay tax on your net earnings
For 2011, the maximum amount of net earn-
from self-employment (if they are $400 or more)
ings from self-employment that is subject to the
from those sources. You must pay the
social security portion of the tax is $106,800. All
self-employment tax whether or not the income
net earnings are subject to the Medicare portion
Self-Employment
is exempt from U.S. income taxes (or whether or
of the tax.
not you otherwise must file a U.S. income tax
Tax
Employed by a U.S. Church
return). Unless your situation is described be-
low, attach Schedule SE (Form 1040) to your
U.S. income tax return.
If you were employed by a U.S. church or a
If you do not have to file Form 1040 with the
qualified church-controlled organization that
Topics
United States and you are a resident of any of
chose exemption from social security and Medi-
the U.S. possessions listed in the preceding
care taxes and you received wages of $108.28
This chapter discusses:
paragraph, figure your self-employment tax on
or more from the organization, the amounts paid
•
Form 1040-SS. Residents of Puerto Rico may
to you are subject to self-employment tax. How-
Who must pay self-employment tax, and
file the Spanish-language Formulario 1040-PR.
ever, you can choose to be exempt from social
•
Who is exempt from self-employment tax.
security and Medicare taxes if you are a member
You must file these forms with the:
of a recognized religious sect. See Publication
Department of the Treasury
Useful Items
517 for more information about church employ-
Internal Revenue Service Center
ees and self-employment tax.
You may want to see:
Austin, TX 73301-0215
Effect of Exclusion
Publication
334
Tax Guide for Small Business
You must take all of your self-employment in-
come into account in figuring your net earnings
517
Social Security and Other
Exemption From
from self-employment, even income that is ex-
Information for Members of the
empt from income tax because of the foreign
Clergy and Religious Workers
Social Security and
earned income exclusion.
Form (and Instructions)
Medicare Taxes
Example. You are in business abroad as a
consultant and qualify for the foreign earned
Form 1040-PR Planilla para la
income exclusion. Your foreign earned income
Declaraci ´ on de la Contribuci ´ on
The United States may reach agreements with
is $95,000, your business deductions total
Federal sobre el Trabajo por
foreign countries to eliminate dual coverage and
$27,000, and your net profit is $68,000. You
Cuenta Propia
dual contributions (taxes) to social security sys-
must pay self-employment tax on all of your net
tems for the same work. See Bilateral Social
Form 1040-SS U.S. Self-Employment
profit, including the amount you can exclude
Security (Totalization) Agreements in chapter 2
Tax Return
from income.
under Social Security and Medicare Taxes. As a
Form 4361 Application for Exemption
general rule, self-employed persons who are
Members of the Clergy
From Self-Employment Tax for Use
subject to dual taxation will only be covered by
by Ministers, Members of Religious
the social security system of the country where
If you are a member of the clergy, you are
Orders and Christian Science
they reside. For more information on how any
treated as self-employed for self-employment
Practitioners
specific agreement affects self-employed per-
tax purposes. Your U.S. self-employment tax is
sons, contact the United States Social Security
Schedule SE (Form 1040)
based upon net earnings from self-employment
Administration, as discussed under Bilateral So-
Self-Employment Tax
figured without regard to the foreign earned in-
cial Security (Totalization) Agreements in chap-
come exclusion or the foreign housing exclu-
ter 2.
See chapter 7 for information about getting
sion.
If your self-employment earnings should be
these publications and forms.
You can receive exemption from coverage
exempt from foreign social security tax and sub-
for your ministerial duties if you conscientiously
ject only to U.S. self-employment tax, you
oppose public insurance due to religious rea-
should request a certificate of coverage from the
Who Must Pay
sons or if you oppose it due to the religious
U.S. Social Security Administration, Office of
principles of your denomination. You must file
International Programs. The certificate will es-
Self-Employment Tax?
Form 4361 to apply for this exemption.
tablish your exemption from the foreign social
This subject is discussed in further detail in
security tax.
Publication 517.
Send the request to the:
If you are a self-employed U.S. citizen or resi-
dent, the rules for paying self-employment tax
Social Security Administration
Income From
are generally the same whether you are living in
Office of International Programs
U.S. Possessions
the United States or abroad.
P.O. Box 17741
The self-employment tax is a social security
Baltimore, MD 21235-7741
and Medicare tax on net earnings from self-
If you are a U.S. citizen or resident alien and you
employment. You must pay self-employment tax
own and operate a business in Puerto Rico,
Chapter 3 Self-Employment Tax
Page 11
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