Social Security and Medicare Tax on Overseas Income
Whether an expat U.S. taxpayer is subject to U.S. Social Security and Medicare tax depends on the country in which he or she is working. The United States generally levies Social Security and Medicare tax as well as income tax on earned income from foreign sources. However, the United States has treaties with a number of countries, including Great Britain, Canada and Australia, that provide rules for coordinating payment of social insurance tax so that the taxpayer is only paying such tax to one country.