FlyerTalk Forums - View Single Post - US citizen looking to work in HK, some questions

Apr 7, 2018 | 2:32 am

#5

cxfan1960

Join Date: Nov 2006

Programs: MPC,CA,MU,AF

Posts: 8,171

Quote:

Originally Posted by bluegatorade

Thanks cxfan. I do plan to be in the foreign country for more than 330 days/year, which I understand to be a requirement to qualify for FEIE. Does filing FBAR complication US taxes?

Also, how does FEIE affect social security/medicare taxes? Are those contributions still made despite qualifying for FEIE, or are those contributions only on the income excluding FEIE income?

Filing FBAR will not add to your tax. However, if you fail to file, there can be harsh penalty.

Quote:

Originally Posted by 889

Third, you pay Social Security tax if you are self-employed overseas, or working as an independent contractor. You also pay it if you work overseas for a U.S. corporation or partnership. And you pay it too if you work overseas for a foreign subsidiary of a U.S. company if the company has made a certain election. You do not pay Social Security tax if you work for a HK company with no U.S. connections, for example.

That is what I understand. If a US taxpayer works for a US company/subsidiary and if it withholds, then FICA is applicable. For self-employment, the taxpayer will be paying FICA through Schedule C or E.

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