sjrcpa
Level 15
2 weeks ago
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AFAIK there is no such tax thing as "Expatriate Status"
Is your client a US citizen living and working outside the US?
The $165K and in the US for no more than 30 days seems to be referencing their eligibility for the foreign earned income exclusion under the physical presence test. The maximum 2024 exclusion is $126,500. And this only applies to earned income. Interest, dividend, etc. income is fully taxable.
If they are not paying income tax to another country, they are likely not paying into another country's social security equivalent system.
So yes the Sche C net is subject to US self-employment tax.
The more I know the more I don’t know.