I am a U.S. citizen and a citizen of another foreign country. I live abroad for many years in that 2nd country. I file a 1099 each year. I was wondering if there is a legal way to stop paying FICA on income and investments.

Also, if I somehow got employment in another country (not the U.S. or where I live) would I still need to pay U.S. FICA on my income?

  • 1
    File a 1099? did you mean a 1040? – Dilip Sarwate Sep 17 '15 at 14:10

If you're a salaried employee working for a foreign employer in a foreign country, you don't need to pay the FICA taxes. Also, if there's a totalization agreement between the US and the other country - there would be special rules.

Otherwise, as long as you're self employed, you'll have to pay the SE (not FICA) tax on your income.

The additional medicare tax on investments (again, not FICA) depends on your income, and also is very hard to shake off.


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