Publication 54 - Tax Guide For U.s. Citizens And Resident Aliens Abroad - 2006 Page 11
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44Members of the Clergy
International Programs. The certificate will es-
Who Qualifies for the
tablish your exemption from the foreign social
security tax.
If you are a member of the clergy, you are
Exclusions and the
Send the request to the:
treated as self-employed for self-employment
tax purposes. Your U.S. self-employment tax is
Deduction?
based upon net earnings from self-employment
U.S. Social Security Administration
figured without regard to the foreign earned in-
Office of International Programs
If you meet certain requirements, you may qual-
come exclusion or the foreign housing exclu-
P.O. Box 17741
ify for the foreign earned income and foreign
sion.
Baltimore, MD 21235-7741
housing exclusions and the foreign housing de-
You can receive exemption from coverage
duction.
for your ministerial duties if you conscientiously
If you are a U.S. citizen or a resident alien of
oppose public insurance due to religious rea-
the United States and you live abroad, you are
sons or if you oppose it due to the religious
taxed on your worldwide income. However, you
principles of your denomination. You must file
may qualify to exclude from income up to
Form 4361 to apply for this exemption.
$82,400 of your foreign earnings. In addition,
This subject is discussed in further detail in
4.
you can exclude or deduct certain foreign hous-
Publication 517.
ing amounts. See Foreign Earned Income Ex-
clusion and Foreign Housing Exclusion and
Income From U.S.
Deduction, later.
Foreign Earned
Possessions
You may also be entitled to exclude from
income the value of meals and lodging provided
Income and
If you are a U.S. citizen or resident alien and you
to you by your employer. See Exclusion of Meals
own and operate a business in Puerto Rico,
and Lodging, later.
Guam, the Commonwealth of the Northern Mari-
Housing:
ana Islands, American Samoa, or the U.S. Virgin
Islands, you must pay tax on your net earnings
Requirements
from self-employment (if they are $400 or more)
Exclusion –
from those sources. You must pay the
self-employment tax whether or not the income
To claim the foreign earned income exclusion,
Deduction
is exempt from U.S. income taxes (or whether or
the foreign housing exclusion, or the foreign
not you must otherwise file a U.S. income tax
housing deduction, you must satisfy all three of
return). Unless your situation is described be-
the following requirements.
low, attach Schedule SE (Form 1040) to your
Topics
1. Your tax home must be in a foreign coun-
U.S. income tax return.
This chapter discusses:
try.
If you do not have to file Form 1040 with the
•
United States and you are a resident of any of
2. You must have foreign earned income.
Who qualifies for the foreign earned in-
the U.S. possessions listed in the preceding
come exclusion, the foreign housing exclu-
3. You must be either:
paragraph, figure your self-employment tax on
sion, and the foreign housing deduction,
Form 1040-SS. Residents of Puerto Rico may
a. A U.S. citizen who is a bona fide resi-
•
How to figure the foreign earned income
file the Spanish-language Form 1040-PR.
dent of a foreign country or countries for
exclusion, and
You must file these forms with the Internal
an uninterrupted period that includes an
•
entire tax year,
Revenue Service Center, Austin, TX
How to figure the foreign housing exclu-
73301-0215.
sion and the foreign housing deduction.
b. A U.S. resident alien who is a citizen or
national of a country with which the
Useful Items
United States has an income tax treaty
in effect and who is a bona fide resident
You may want to see:
Exemption From
of a foreign country or countries for an
uninterrupted period that includes an
Publication
Social Security and
entire tax year, or
519
U.S. Tax Guide for Aliens
Medicare Taxes
c. A U.S. citizen or a U.S. resident alien
570
Tax Guide for Individuals With
who is physically present in a foreign
Income from U.S. Possessions
country or countries for at least 330 full
The United States may reach agreements with
days during any period of 12 consecu-
foreign countries to eliminate dual coverage and
596
Earned Income Credit (EIC)
tive months.
dual contributions (taxes) to social security sys-
tems for the same work. See Binational Social
Form (and Instructions)
See Publication 519 to find out if you qualify
Security (Totalization) Agreements in chapter 2
as a U.S. resident alien for tax purposes and
1040X Amended U.S. Individual Income
under Social Security and Medicare Taxes. As a
whether you keep that alien status when you
Tax Return
general rule, self-employed persons who are
temporarily work abroad.
subject to dual taxation will only be covered by
2555 Foreign Earned Income
If you are a nonresident alien married to a
the social security system of the country where
2555-EZ Foreign Earned Income
U.S. citizen or resident alien, and both you and
they reside. For more information on how any
Exclusion
your spouse choose to treat you as a resident
specific agreement affects self-employed per-
alien, you are a resident alien for tax purposes.
sons, contact the United States Social Security
See chapter 7 for information about getting
For information on making the choice, see the
Administration, as discussed under Binational
these publications and forms.
discussion in chapter 1 under Nonresident Alien
Social Security (Totalization) Agreements in
Spouse Treated as a Resident.
chapter 2.
If your self-employment earnings should be
Waiver of minimum time requirements. The
exempt from foreign social security tax and sub-
minimum time requirements for bona fide resi-
ject only to U.S. self-employment tax, you
dence and physical presence can be waived if
should request a certificate of coverage from the
you must leave a foreign country because of
U.S. Social Security Administration, Office of
war, civil unrest, or similar adverse conditions in
Chapter 4 Foreign Earned Income and Housing: Exclusion – Deduction
Page 11
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