Olivier Wagner - How To Avoid U.S. Social Security Tax When Working Overseas

Americans who work abroad face a challenging job preparing their tax returns. So let’s happily ignore today’s income tax issue and focus instead on Social Security taxes.

Technically, I’m talking about the FICA tax: the tax you pay for your pension, survivor’s pension, disability insurance, and Medicare benefits. But for the sake of simplicity — to match the way ordinary people talk about these taxes — I’ll call these taxes “Social Security” taxes.

Let’s take a look at digital nomads. You are a U.S. citizen and own a business incorporated as a corporation and operates in the United States. You plan to travel abroad for a few years. During the trip, you will continue to work and receive a salary from your business.

Read More