Social Security Tax; For those Americans working for a Thai company..

[715]

Social Security Tax; For those Americans working for a Thai company here are you paying Social Security tax back home? Do you have to? If you do not have to, should you?

[TravelerEastWest]

I asked this question about 6 years ago to the IRS and they said (at that time) that you don't need to pay SS if you are paying it in Thailand.

Now you may want to pay anyway depending on your personal situation.

[Suradit69]

But your work overseas may help you qualify for social security benefits from the United States or an agreement country. This is because the United States has agreements with 24 countries to coordinate social security programs across national boundaries. This helps people who worked in both the United States and in an agreement country, who may have not worked long enough in either to qualify for benefits.

http://ssa-custhelp.ssa.gov/app/answers/detail/a_id/257/~/applying-work-overseas-to-my-social-security-record

I think you can only pay into SS and earn quarters if your pay originates from a US company or you are in one of the "agreement countries."

When I was working overseas for a US company they paid into SS for me, but when I was working for a non-US entity overseas I was unable to make further payments. The US Embassy in Bangkok has someone with basic SS and tax information. Check with them to be sure: http://bangkok.usembassy.gov/service.html

[Lefty]

Paying SS while overseas helps with the 10 quarter requirement. But note you must pay your share and company share so cost is double. Paying is a personal issue not a legal issue.

Lefty

[lanny]

Lefty has it right, except that the minimum requirement is 10 YEARS- 40 quarters, and there is a legal angle to this. According to the law, if you entered your employment contract in the US, you are liable for the FICA tax, both halves; if you entered your contract outside the US, you are not liable.

You can always pay the tax, if it isn't being withheld, by filing Schedule SE as part of your US tax return. Of course, you must also include the income in the income section of the return.

As Lefty says, paying the tax helps meet the minimum requirement for qualification. Beyond that, however, you are probably better off saving the money in your own retirement account.

Edited August 19, 2013 by lanny

[715]

Thanks for the replies, glad to put that money where I want it.