FICA & Self-Employment Tax Abroad

US citizens working abroad — especially self-employed — may face double social security contributions. Calculate your FICA/SE tax, check if a totalization agreement applies, and see how to minimise double contributions.

Your work situation

Employment type

Net self-employment income

W-2 wages from US employer

Country of work

Do you have a US certificate of coverage (Form 101)?

FICA / SE tax analysis

2025 SS wage base

$176,100

SE tax rate

15.3%

Your SE tax estimate

SE deduction (50%)

FICA breakdown

Self-employment tax (Schedule SE)

Key rules

FEIE does NOT reduce SE tax. Even if you exclude all foreign earned income via FEIE, you still owe self-employment tax on 92.35% of net SE income. This is a common and costly surprise.

US employer abroad = FICA applies. If you work for a US company abroad, FICA withholding continues as normal unless a certificate of coverage exempts you.

Foreign employer abroad. Generally NO US FICA on foreign employer wages if subject to foreign social security system (especially with totalization agreement).

FEIE and SE tax interaction. You CANNOT use FEIE to exclude income from SE tax — but you can deduct the employer-equivalent portion (50% of SE tax) from gross income on Form 1040.