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I own my own business overseas, which is a legal entity in my country of residence. Do I qualify for the foreign earned income exclusion, and do I have to pay social security and medicare taxes?

April 26, 2017Business country earned entity foreign Legal overseas qualify Residence social security

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I own my own business overseas, which is a legal entity in my country of residence. Do I qualify for the foreign earned income exclusion, and do I have to pay social security and medicare taxes?

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• You qualify for the exclusion from the 3 taxes. However, you must file an informational tax return for any foreign companies you own (Form 5471). Form 5471 is used by certain U.S. citizens and residents who are officers, directors, or shareholders in certain foreign corporations.