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Old 12-11-2014, 05:21 PM
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U.S. Citizen living in U.S. employed by foreign country

Hello,

If I am employed and paid a salary by an Indonesia company and am a U.S. citizen living in America how do I go about filing taxes? What forms, how do I pay social security, etc? Any information or a direction on where I can find answers would be appreciated.

Thank you



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Old 12-12-2014, 09:04 PM
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If I am employed and paid a salary by an Indonesia company and am a U.S. citizen living in America how do I go about filing taxes? ==>>as a US citizen or a US resident, as usual ,you need to report your US source and world wide income that you earn in Indonesia on your US return. You may claim any income tax(es) paid to the Indonesian taxing authority(ies) on your US return by filing form 1116 and report it on line 47 of 1040 or on line 8 Sch A of 1040 aslongas you itemize deductions on Sch A of 1040.

What forms, how do I pay social security, etc? Any information or a direction on where I can find answers would be appreciated.======>> as an employee in the US, your employer deducts these taxes from each wage payment. Your employer must deduct these taxes even if you do not expect to qualify for social security or Medicare benefits. In general, U.S. social security and Medicare taxes apply to payments of wages for services performed as an employee in the US. you are always obligated to file an income tax report and pay Social Security taxes if required. but whether you have to pay these taxes depends on the type of income you receive. As a U.S. citizen working for a foreign company that has no U.S. interests, you may not be required to pay U.S. Social Security taxes. The US has entered into social security agreements with foreign countries to coordinate social security coverage and taxation of workers employed for part or all of their working careers in one of the countries. These agreements are commonly referred to as Totalization Agreements. Under these agreements, dual coverage and dual contributions (taxes) for the same work are eliminated.When you work as employee, your employer must withhold the specified percentage from each of your paychecks. The employee percentage of the Social Security tax equals 6.2 percent; To figure your Social Security tax withheld from your paycheck, multiply your gross pay by the Social Security employee rate 6.2%. Each year, the Social Security Administration adjusts the limit on the maximum earnings subject to the Social Security tax. the limit equals $117,000 for 2014.
Totalization Agreements

Social Security Tax / Medicare Tax and Self-Employment



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