Verni Tax LawGet Help Filing Totalization Agreement
Help Filing Totalization Agreement for Self-Employed Americans
Self-employed and living abroad?
You might be paying Social Security tax to the IRS and your foreign country at the same time. That’s thousands gone each year, just because one exemption wasn’t filed.
No warning. No refund. Just money lost quietly.
Get legal help filing the exemption that the IRS actually honors with the right wording, the right documents, and a tax attorney who’s done this for 25+ years.
What Is an Expat Totalization Agreement?
If you're a self-employed American expat, there’s a chance you could be paying into two Social Security systems at once, that is, the one in the U.S. and the one where you live.
An expat totalization agreement is a deal between the U.S. and certain countries to make sure you only pay Social Security tax to one country, not both. It’s meant to protect people like you from being taxed twice just because you work across borders.
These agreements also let you combine your work history from both countries. That means if you don’t have enough years to qualify for benefits in one country, your time worked in the other might help you qualify.
So in short:
An expat totalization agreement is a deal between the U.S. and certain countries to make sure you only pay Social Security tax to one country, not both. It’s meant to protect people like you from being taxed twice just because you work across borders.
These agreements also let you combine your work history from both countries. That means if you don’t have enough years to qualify for benefits in one country, your time worked in the other might help you qualify.
So in short:
- You avoid paying double Social Security tax, and
- You get to keep or qualify for retirement/disability benefits more easily.
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If you want to claim these benefits, the IRS needs more than just your word.
Avoid Double Tax: File It RightYou’ll need to file the right forms, include a certificate of coverage, and clearly show why you’re exempt.
That’s where experienced legal guidance makes the difference.
Anthony Verni, a tax attorney and CPA with 25+ years of experience, helps self-employed Americans abroad get it done right so the IRS doesn’t question it, delay it, or deny it.
Self-Employed American Expats — How the Rules Apply
Your self-employment income is taxed by either the U.S. or the country you live in, not both, but only if there’s an expat totalization agreement and you file correctly to claim the exemption.
Here’s how it breaks down:
Here’s how it breaks down:
- If your country has a totalization agreement:You can be exempt from U.S. self-employment tax, but only if you file the right form and show proof that you're paying into the foreign country’s system.
- If your country does not have an agreement:You’re required to pay U.S. self-employment tax in full even if you're already contributing to a foreign system. This often means paying twice.
These rules are fixed. The IRS doesn’t apply them for you.
If the exemption isn’t claimed properly, you’ll be taxed in the U.S. by default.
If the exemption isn’t claimed properly, you’ll be taxed in the U.S. by default.
Ready to Take the Next Step Toward a Real IRS Settlement?
We’ve shown you what makes an Offer in Compromise succeed; now let’s apply it to your case. With a clear understanding of your financials, we’ll help you structure an offer that meets IRS standards and protects your best interests.
Start Your Confidential IRS Offer AssessmentUnsure which system covers you or if you're at risk of double payment? One review can give you the answer and a clear path forward.
Speak to an Attorney About Your SE Tax ExposureCertificate of Coverage — The Key to Your Exemption
To be exempt from U.S. self-employment tax under an expat totalization agreement, you must prove that you’re already covered under the foreign country’s system. The IRS won’t take your word for it.
This proof is called a Certificate of Coverage.
It’s the official document that confirms which country’s Social Security system applies to you. Without it, your exemption isn’t valid, and the IRS will treat your income as taxable. That’s why this certificate is required for every tax year you claim exemption.
This proof is called a Certificate of Coverage.
It’s the official document that confirms which country’s Social Security system applies to you. Without it, your exemption isn’t valid, and the IRS will treat your income as taxable. That’s why this certificate is required for every tax year you claim exemption.
How do you request it (U.S. vs. Foreign Agency)?
Where you request the certificate depends on which system applies:
- If you're covered under the U.S. system, you request it from the Social Security Administration’s Office of International Programs.
- If you're covered under the foreign system, you must request it from that country’s Social Security office.
Hear from relieved
Taxpayers who trusted Verni Tax Law
Anthony was creative in helping me resolve some past issues in a way that they never became a problem so that is greatly appreciated and I feel confident I can now enjoy my retirement with peace of mind. Thanks for that.
Ken B.
Cebu City, Philippines
Anthony was creative in helping me resolve some past issues in a way that they never became a problem so that is greatly appreciated and I feel confident I can now enjoy my retirement with peace of mind. Thanks for that.
Douglas R.
Osaka, Japan
Anthony was creative in helping me resolve some past issues in a way that they never became a problem so that is greatly appreciated and I feel confident I can now enjoy my retirement with peace of mind. Thanks for that.
Phil Y
President, Swift & Secure Systems Inc., Boynton Beach, FL
Anthony was creative in helping me resolve some past issues in a way that they never became a problem so that is greatly appreciated and I feel confident I can now enjoy my retirement with peace of mind. Thanks for that.
Yassin and Eva, B.
President, Swift & Secure Systems Inc., Boynton Beach, FL
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