Self-employment tax break (Chile)

Posted: September 18, 2018 in Foreign residency, News
Tags: , , , , ,

2017’s US taxes got borked and the IRS sent me back a notice that I owed them A LOT OF MONEY™ the reason for which THEY WILL NOT TELL YOU™ so you simply have to figure it out yourself and redo everything, paying interest penalties on money you never owed in the first place because it took them 9 months to get back to you because they are slow and they suck.

Anyways, in dealing with the fallout, I found a neat thing called the US/Chile Social Security Totalization Agreement which pretty much absolves you of the need to pay self-employment tax if applicable. 

There is no official tax treaty (yet) between the USA and Chile, but fortunately this agreement, in combination with the FEIE, should help eliminate a good deal of your tax burden if you are a self-employed vagabond in Chile.

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