What is Social Security for Expats?
Rules governing US Social Security benefits and taxes for Americans working or retiring abroad.
Definition
US citizens working abroad may still be subject to Social Security taxes depending on their employer and the country where they work. Self-employed expats generally continue to pay US self-employment tax (which includes Social Security). Totalization Agreements between the US and certain countries prevent dual social security taxation. Social Security benefits can generally be received while living abroad, though some countries have restrictions. Benefits may be taxable on US returns.
Who Needs to Know This?
US citizens working abroad, self-employed expats, and retirees receiving Social Security while living overseas.
Key Deadline
Self-employment tax due with annual return; quarterly estimated payments recommended
Potential Penalties
Underpayment penalties for not paying self-employment/Social Security tax
Related Forms
Common Mistakes to Avoid
- 1Not knowing you may still owe Social Security tax while abroad
- 2Not utilizing Totalization Agreements to avoid dual contributions
- 3Assuming Social Security benefits stop when you move overseas
- 4Not understanding taxation of Social Security benefits abroad
Related Terms
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