Question

As a duel citizen of USA and Sweden, how do I show foreign self employment income on schedule c without incurring self employment tax on turbo tax

Forum|Forum|6 years ago
July 9, 2019
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Bottom line is, you will pay the SE tax to the IRS. But in the end you will get a "credit" for foreign taxes paid when you work it through the Foreign Taxes & Exclusion section under the Deductions & Credits tab when you get to that point in the program.

Understand that the credit is not dollar for dollar for foreign taxes paid either. How much the credit is depends on any reciprical tax agreements between the US and Sweden, if any such agreement even exists.