US Citizens

When US citizens work abroad, they may qualify for the foreign earned income exclusions.

Income and Social Tax Withholding

Your wages may or may not be subject to withholding for income, Social Security and Medicare taxes while on foreign assignment. You may find that your wages are now subject to hypothetical taxes by your employer, or income and social tax withholding by the host location's government.

For a discussion on FICA withholding see our Social Security and Medicare Taxes page. The page on Totalization Agreements provides information on how you may be able to prevent double social taxation as well what to do when you have paid social taxes to more than one country over your career. The page on Income Tax Withholding lets you know about situations when you may want to reduce or eliminate federal income taxes on your foreign pay, and provides hints on filling out some payroll forms.

The Hypothetical Tax page explores the concepts of hypothetical tax and tax equalization. These concepts are a guide to helping you understanding your employer's specific policy.