# US Taxes and Expats



## CherylFah (Apr 8, 2021)

Hello everyone, could someone explain to me exactly what forms and schedules I need fill out as a self employed ESL teacher in Spain. I have permanent residence and I pay Spanish Social Security (cuota de Autonomos) I am confused as where to deduct the Social Security tax I paid. 
Also on Schedule 1 Line 8 other income is where I am under the impression I include the tax deduction in() however i have already filled that line in with short term disability (Baja por accidente de coche) that I received and income I received from the Spanish government due to the Covid. Do I list all three there? I am a bit lost with all of these forms. My income is way under the limit. However I also have income from dividend that funds in the US gave out. 
So basically I have:
Income from interest both American and Spanish banks
Dividends paid out by American Bonds
Income from my teaching
Income from a Short term disability
Income from an Aid the Spanish government paid out
Bank Account in Spain ( I already filed FBAR and know I have to do the 8938)
Thank you for any help 
Cheryl


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## Bevdeforges (Nov 16, 2007)

OK, first of all, you don't deduct the Social Security tax you paid in Spain. (Actually, you don't deduct the Social Security tax you pay in the US anyhow.) Basically, you file US tax as an expat pretty much the same way you filed it when you lived in the US. You are supposed to declare your worldwide income - but you then can "exclude" your earned income (i.e. your earnings from your ESL business) using form 2555. 

Take a look at IRS Publication 54 (available on the IRS website) for an overview of how to file from overseas. And the good news is that, unless you have more than $200,000 in your Spanish bank account, you probably don't have to bother with a form 8938 at all.


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## Moulard (Feb 3, 2017)

Remember given you were self employed you will need Schedule SE.

But there is a totalisation agreement between the US and Spain so you should not have pay US social security taxes. But you may need a certificate of coverage from the Spanish tax authority. 

A certificate of coverage issued by Spain serves as proof of exemption from Social Security taxes on the same earnings in the US.

Depending on the nature of disability and aid payments and how they are treated under Spanish law, they may or may not be taxable by the US based on the terms of the US-Spain tax treaty. 

If they would be considered a social welfare payment, they may well be tax exempt, if they were in the form of tax relief they may well be tax exempt. It may well be worth reading the US-Spain tax treaty and its accompanying technical memorandum to try to figure out how they should be treated.


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