# Do I have to report Self Employment income in the US if I'm covered by the UK under ther Totalization agreement?



## nilssonc (Feb 27, 2021)

Hello - first thread here and I'm sure this has been answered many times over but I couldn't find anything with the search...

I'm a US Citizen living in the UK since 2017. Under the Totalization Agreement between the US and the UK, I pay national insurance here and should be exempt from paying the Social Security/Medicare tax, as far as I understand it.

My question is - in filing my US Taxes, do I need to report the SE income and claim the exemption somewhere? Or do I not report it at all?

Thanks!

Chad


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## Bevdeforges (Nov 16, 2007)

Technically speaking you are supposed to report your worldwide income on your US returns. You can then "exclude" the income using form 2555 or the foreign tax credit. The exemption from "self-employment tax" (i.e. SS and Medicare) requires you to have a document proving your enrollment in the national insurance program in the UK.


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## 255 (Sep 8, 2018)

nilssonc -- To amplify Bev's post: Self-Employment Tax for Businesses Abroad | Internal Revenue Service (irs.gov) 

Treaties take precedence over tax law -- so anytime you are doing anything "out of the ordinary," you should attach a statement.

Cheers, 255


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