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by BrentOzar 2122 days ago
> you apply for FEIE and won't have to pay federal income tax as a US citizen.

The Foreign Earned Income Exclusion only applies to the first $107,600 you earn in 2020. You still have to pay taxes on the rest.
2 comments
seanmcdirmid 2122 days ago
After your foreign earned income exclusion is exhausted, you can deduct your foreign taxes, at least. In low tax but high COL places such as Singapore and HK, you also have the housing deduction to help out.
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cpursley 2122 days ago
And you're still liable for social security.
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seanmcdirmid 2122 days ago
No, you only pay SS if you are resident.
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cpursley 2121 days ago
For most situations, you're liable:

https://brighttax.com/blog/do-us-expats-pay-medicare-tax/

https://www.irs.gov/individuals/international-taxpayers/soci...

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seanmcdirmid 2120 days ago
No, not even close: most expats do not pay social security taxes abroad. If you work for the USA embassy, you pay SS tax, but if you work for Microsoft China, you do not (you do, however, pay Chinese SS of course). In particular, see https://www.hrblock.com/expat-tax-preparation/resource-cente...

> If you are working for a foreign employer who has no requirement to withhold U.S. social security, you have no obligation to remit U.S. social security taxes on your earnings and in fact, are prohibited from making such voluntary contributions to the U.S. Social Security System.

Almost every US company has it setup that you are going to be working for a foreign employer, not a US one.

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