# Freelance English Teaching as self employment



## Fledermaus (Nov 13, 2012)

I am trying to finish up my 2014 Tax Return. I am always confused about where to file my income. I have worked as freelance English teacher (I earned a few hundred Euros in 2014) and as trainee psychotherapist for which I have earned a few thousand Euros. I have been taxed on this income in Germany. I think I remember reading Bev that you suggested to someone to put the amount on line 7 on 1040 anyway and then write as occupation freelance teacher (in my case) and then to write exempt on line 57 (self-employment tax). Would I only be able to take the 2555 for my interest earned then or would this income (because I have filed it on line 7) also be included on 2555. Or should I file schedule C?

Thanks in advance for your help.


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## Bevdeforges (Nov 16, 2007)

The form 2555 is only for so called "earned" income - i.e. salary and salary-like income, so both your freelance income and your trainee wages. Probably best to include both "employers" on your 2555 form, add the amounts together and simply put the total on line 7. 

I wouldn't write anything on line 57. As long as you are enrolled in somebody's social security system (say, Germany's) you don't owe the self-employment tax - and should probably get a certificate from the social security authority to attest to this. Or, if you didn't pay into the social insurance system where you were, then pay the self-employment tax. (Can't hurt to get a couple more quarters on your record.)

I wouldn't bother with the Schedule C unless you've got pretty significant income from your freelance teaching and need or want to claim your expenses.

Your interest income goes on line 8a, labeled (oddly enough) Taxable interest, though unless you had interest income exceeding your personal exemption plus the standard deduction (usually close to $10,000 or so) you won't owe any tax on it. Obviously, if you have foreign accounts totalling $10,000 or more, you should be filing an FBAR statement - which is separate from your US tax filing.
Cheers,
Bev


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## Fledermaus (Nov 13, 2012)

Thanks so much. Almost finished and then I can send it in!


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## BBCWatcher (Dec 28, 2012)

....Or you have the option to skip Form 2555 entirely and only take the Foreign Tax Credit (Form 1116). Time permitting, use your favorite tax preparation software (even the free stuff) to run the numbers both ways to see what you prefer.


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## StewartPatton (Aug 5, 2014)

Bevdeforges said:


> The form 2555 is only for so called "earned" income - i.e. salary and salary-like income, so both your freelance income and your trainee wages. Probably best to include both "employers" on your 2555 form, add the amounts together and simply put the total on line 7.


Nope. Self-employed people must use Schedule C--this isn't optional.



> I wouldn't write anything on line 57. As long as you are enrolled in somebody's social security system (say, Germany's) you don't owe the self-employment tax - and should probably get a certificate from the social security authority to attest to this.


Nope. Just being enrolled in another country's social security system is not enough to get out of paying US self-employment taxes. There must also be a "totalization agreement" between the US and that country, and the taxpayer must qualify for the benefits of the totalization agreement. Just paying into the resident country and getting a certificate of coverage may work, or it may not--it depends on the agreement.


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