US Social Security and Medicare taxes continue to apply to “wages” for services performed as an employee working outside of the United States if you are working for an “American employer”. Many Americans abroad are employees of a foreign employer and I will write a separate blog post about their situation. Many Americans abroad are self-employed … Continue reading Understanding Self-Employment Tax: The American Abroad
Under current law, limited partners who materially participate in a partnership's business are not subject to self-employment tax. Members of an S corporation who materially participate in the S corporation's business are subject to self-employment tax only on "reasonable compensation" received in their capacity as an “employee”. These individuals are also exempt from the 3.8% … Continue reading All You Need to Know about the 3.8% Medicare / Net Investment Income Tax & how Pres. Biden Will Expand Who Pays It
In the face of the corona virus, just about everyone I know has been working from home for quite some time. Home can be Stateside or overseas. Many are now asking if they are entitled to take a tax deduction for their “home office”. Here’s everything you need to know. The home office tax break … Continue reading COVID-19: Can I Take a Home Office Deduction?