Table of Contents
Withholding income tax from the pay of U.S. citizens,
Withholding tax at a flat rate, and
Social security and Medicare taxes.
505 Tax Withholding and Estimated Tax
Form (and Instructions)
673 Statement For Claiming Exemption From Withholding on Foreign Earned Income Eligible for the Exclusion Provided by Section 911
W-4 Employee's Withholding Allowance Certificate
W-9 Request for Taxpayer Identification Number and Certification
See chapter 7 for information about getting this publication and these forms.
U.S. employers generally must withhold U.S. income tax from the pay of U.S. citizens working abroad unless the employer is required by foreign law to withhold foreign income tax.
Provide the payer of the benefits with a residence address in the United States or a U.S. possession, or
Certify to the payer that you are not a U.S. citizen or resident alien or someone who left the United States to avoid tax.
Generally, U.S. payers of income other than wages, such as dividends and royalties, are required to withhold tax at a flat 30% (or lower treaty) rate on nonwage income paid to nonresident aliens. If you are a U.S. citizen or resident alien and this tax is withheld in error from payments to you because you have a foreign address, you should notify the payer of the income to stop the withholding. Use Form W-9 to notify the payer.
You can claim the tax withheld in error as a withholding credit on your tax return if the amount is not adjusted by the payer.
A copy of Form SSA-1042S, Social Security Benefit Statement.
A copy of your “green card.”
A signed declaration that includes the following statements.
“I am a U.S. lawful permanent resident and my green card has been neither revoked nor administratively or judicially determined to have been abandoned. I am filing a U.S. income tax return for the taxable year as a resident alien reporting all of my worldwide income. I have not claimed benefits for the taxable year under an income tax treaty as a nonresident alien.”
Social security and Medicare taxes may apply to wages paid to an employee regardless of where the services are performed.
In general, U.S. social security and Medicare taxes do not apply to wages for services you perform as an employee outside the United States unless one of the following exceptions applies.
You perform the services on or in connection with an American vessel or aircraft (defined later) and either:
You entered into your employment contract within the United States, or
The vessel or aircraft touches at a U.S. port while you are employed on it.
You are working in one of the countries with which the United States has entered into a bilateral social security agreement (discussed later).
You are working for an American employer (defined later).
You are working for a foreign affiliate (defined later) of an American employer under a voluntary agreement entered into between the American employer and the U.S. Treasury Department.
The U.S. Government or any of its instrumentalities.
An individual who is a resident of the United States.
A partnership of which at least two-thirds of the partners are U.S. residents.
A trust of which all the trustees are U.S. residents.
A corporation organized under the laws of the United States, any U.S. state, or the District of Columbia, Puerto Rico, the U.S. Virgin Islands, Guam, or American Samoa.
The United States has entered into agreements with some foreign countries to coordinate social security coverage and taxation of workers who are employed in those countries. These agreements are commonly referred to as totalization agreements and are in effect with the following countries.
Under these agreements, dual coverage and dual contributions (taxes) for the same work are eliminated. The agreements generally make sure that you pay social security taxes to only one country.
Generally, under these agreements, you will only be subject to social security taxes in the country where you are working. However, if you are temporarily sent to work in a foreign country and your pay would otherwise be subject to social security taxes in both the United States and that country, you generally can remain covered only by U.S. social security. You can get more information on any specific agreement by contacting:
Social Security Administration
Office of International Programs
P.O. Box 17741
Baltimore, MD 21235-7741
If you have access to the Internet, you can get more information at:
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