US Expat Taxes for Self Employed and Small Business owners in 2023

[@finguy8572]

Great video

[@SashaPogba]

This video convinced me to renounce my US citizenship !

[@Simon-Misiewicz-US-UK-Taxes]

A nicely explained video, bravo

[@lovitac]

Thank you for your video. We are doing our taxes with Myexpattaxes. We are self-employed and residents in Chile, one of your employees told us via chat that Chile wasn't in the list of countries with the Totalization Treaty, but watching this video I actually found we are. We were ready to file our taxes. I don't know if I have enough time to get that paperwork here, I am pretty overwhelmed 😭

[@MyExpatTaxes]

Let us know your email with MyExpatTaxes. You don't need the certificate of coverage to file, but we need you to confirm you were registered as self-employed there to invoke the treaty.

[@lovitac]

@@MyExpatTaxes we filled and payed our taxes this morning, because we are afraid of the IRS. I don't even know how we can get that certificate of coverage here

[@MyExpatTaxes]

@@lovitac Hi there! Nathalie just let me know that she has reached out to you via email.

[@lovitac]

@@MyExpatTaxes hi! She confirmed that Chile is part of the countries with the treaty. We both are registered in Chile as self-employed, we have been paying for our health here since we moved here two years ago. We were able to get the "certificate of coverage" that you get for being registered, however, that certificate doesn't show any amount of payments, is just a certificate showing that you are registered. My question is (we emailed this, with no answer yet), If we have the certificate of coverage, that shows that we are registered, but doesn't show the amounts payed, is that enough for the IRS to invoke the treaty? We already filled our taxes with you and payed FICA taxes. Can we fix that and get our money back? Thanks

[@MyExpatTaxes]

@@lovitac Hi there! We are glad that you have confirmed with Nathalie that Chile is a part of the countries with the treaty. She has let me know that she has responded to you via email on how to best amend your situation. Thank you!

[@scottmoseley5122]

great video BUT still not clear if One filing 5471 can avail of FEIE ? ??/ Thhanks

[@MyExpatTaxes]

Hi there! The FEIE and 5471 are not dependent/related to each other, so yes, you can use both Form 2555 (FEIE) and Form 5471 in your return. However, you cannot use FEIE on 5471 GILTI Net Profit. Hope this helps!

[@Glamlatte]

But in Italy isn't the social security tax 35%? so isn't it better to continue to pay the US Self employment tax since it's 15% anyway?

[@Simon-Misiewicz-US-UK-Taxes]

A nice video. Can we use your software as an agent for our clients

[@MyExpatTaxes]

Hi there! Please reach out to us via email so we can better assist: [e-mail]. Thank you 😊

[@AlexanderEO5]

As a freelancer living in Rome but working with companies in Spain what certificate do I need to provide to prevent double taxation from US and Spain?

[@MyExpatTaxes]

We would suggest you check out our article about the Foreign Earned Income Exclusion and Foreign Tax Credit: www.myexpattaxes.com/expat-tax-guide/expat-tax-benefits/ Both of these benefits are designed to help US expats avoid double-taxation!

[@traveltirement]

Scenario: I have a US registered Single Member LLC. I pay myself as an employee. I buy a home and move to Italy. All of my income comes from US clients, but I run the business from Italy. I know I have to report/file on worldwide income. But would I file first in Italy on my income, then claim a tax credit in the US? Or do I file in the US, then claim a tax credit in Italy? I hope my question is clear...😊

[@MyExpatTaxes]

Hi there, generally speaking, yes, file local (Italian) taxes first, and then claim Foreign Tax Credits on your US return.

[@MyExpatTaxes]

Also, if you disregard your LLC and report on Schedule C, there may be self-employment tax if you are not a Dual Italian and US Citizen. If you need more assistance, we have a planning service.

[@Simon-Misiewicz-US-UK-Taxes]

Why Austria, apart from the beautiful vistas and lakes?

[@MyExpatTaxes]

Nathalie’s husband is Austrian 😉

[@jthunders]

Freistãtter Bier. Bosner from the Auinger wurstelstand

[@allieroqueta]

Does a Single Member LLC have to file Form 5471?

[@MyExpatTaxes]

If you own more than 10% of a foreign corporation, you will need to file Form 5471.

[@Travelpasscass]

I'm a digital nomad who moves around a lot but spends less than 30 days in the U.S. with an income that is less than 120,000 (which is what I believe you said in the other video was necessary to not be taxed twice. Sorry a little confused on how all this works). Do you need to have a physical residence somewhere? I am a mix of an independent contractor for a US company and self employed so I am a little lost with how I would file 😅

[@MyExpatTaxes]

Hey there! For nomads to be eligible for the US Foreign Earned Income Exclusion, pass one of these two tests: Bona Fide Residence test: Were you a registered resident and subject to local income taxes in your host country for at least a full calendar year? Then you can claim the FEIE for up to the maximum amount ($120,000 for Tax Year 2023). Physical Presence Test: You will need to be outside of the US for 330 full days in a consecutive 12 month period that begins or ends in the tax year. If yes, you qualify for the FEIE. Depending on your qualifying period, you may have to prorate the maximum FEIE amount you can take. We have a blog for digital nomads that may help as well: www.myexpattaxes.com/expat-tax-tips/digital-nomad/us-taxes-for-digital-nomads/

[@scottmoseley5122]

@@MyExpatTaxes but basically there is no getting around the Self Employment Tax only reducing it through various way like forming an LLC as you said right ?

[@MyExpatTaxes]

@@scottmoseley5122 Forming an LLC does not help reduce self-employment tax, as single member LLC income is reported on Schedule C as a disregarded entity and subject to self-employment tax. The only general way outside of using a totalization treaty is to reduce your net profit with business expenses or to get paid as an employee and not a self-employed person.