Wanna know something that sucks big time? As a US Citizen living abroad, not only am I still accountable for annual filing to the IRS, but as a self-employed (or soon to be anyway…or at least I thought) person, I must pay self-employment tax on my entire net income including royalties. This is regardless of the fact that I also will be paying tax in France. This would seemingly put me somewhere around the 30%or higher tax bracket. Cool, eh? Will the wonders of my bureaucratically poisoned life never cease?
I actually have to file taxes in two countries. Why? Because the US is such a “this one here’s trying to be independent and get away with it” screwing *&%@ard! They even have claims on any bank accounts my husband and I jointly own…or any over which I have signing authority. No wonder expats are waiving adios to Uncle Sam and becoming citizens of other countries!
On top of this, supposedly authors living in France are not allowed to have what is called autoentrepreneur status, with a simplified tax scheme and are actually taxed at 45%, paying into the system as if they had an employee. I have yet to confirm this, but so says the link. So 45% in France and 15.3% in the States leaves me with less than half of my income!!! This is insanity!
It is enough to make me scream and literally has…all day long…for two days.
Why can’t I just go about my business? Why is everything so god-damned hard? Why does my government only want to screw their citizens into conformity and slavery while spewing bogus platitudes about liberty and justice and the most laughable of all…free enterprise?
Sometimes, it feels like we just can’t win.
In continuing my panic-stricken research, I came across the site of CPA, Dan Nelson. He writes:
“An exception to paying social security on your foreign self employment income occurs if you reside in a country which has a social security agreement with the US. In that event you can elect to have your earnings covered by the foreign country’s social security (only if they have a social security agreement with the US), and not have to pay US self employment tax (social security).”
So now, I’m thinking though I’ll still have to file, I won’t have to pay the 15.3% on top of everything else…which is a huge relief…if it is indeed the case. However, I’m still confused. Will I have been in France long enough this year for all this to apply to me?
I just found an easy to understand PDF offered by GTN.com that explains, in plain English, US Foreign National Taxation.