Self Employment Tax in Canada

[SGM Tax]

How do I exempt the Self Employment Tax for a US citizen Self-employed in Canada?

[Just-Lisa-Now-]

Why wouldnt they be subject to SE taxes in the US?

If you are a self-employed U.S. citizen or resident, the rules for paying self-employment tax are generally the same whether you are living in the United States or abroad. The self-employment tax is a social security and Medicare tax on net earnings from self-employment.

https://www.irs.gov/individuals/international-taxpayers/self-employment-tax-for-businesses-abroad#:~....

[SGM Tax]

The US will not double tax its citizens working abroad for social security tax if those US citizens are paying a similar tax to the country they work in, namely Canada.

I know the law. My question is how to eliminate Schedule SE from Pro Series when completing Schedule C.

[Just-Lisa-Now-]

Sounds like youre asking about foreign tax credit, so that youre not double taxed you get a credit for taxes paid to the foreign government.

Any SE tax adjustments would be done on the SE worksheet.

[TaxGuyBill]

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@SGM Tax wrote:

My question is how to eliminate Schedule SE from Pro Series when completing Schedule C.

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ProSeries is not very good with many foriegn related things.

You can use the "Schedule SE Adjustments Worksheet" to override the SE tax to $0.  However, as far as I can tell, you can't file Schedule 2 with the statement "Exempt, see attached statement" notation that the IRS Instructions tells us to do.  So to do that correctly, it probably requires filing by paper (or using other software).