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Overseas Contractor (tax exempt) and 1099 misc... why am I still taxed?

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patm1975

Junior Member
What is the name of your state? Overseas Cuba (Texas)


I am an Overseas Contractor (tax exempt) and recieved a 1099 misc from another company... why am I taxed on my 1099 misc when I was never in the USA doing the work?

I have worked as a contractor filed a 2555 every year and never paid taxes. Well now that I work for a different company they pay me a salary base. I pay SSN and Medicare which I believe is right. But what I think is not right is all my overtime is paid by separate company. I just got a 1099 misc from this other company that is in the US. I am using TaxCut software to do my taxes. I past the physical test of not being in the US making me tax exempt. I Setup the 2555 but I am still being taxed self employed tax. I am not being taxed for my salary as an employee. Is the self employeed tax wrong? Is there a way to put the 1099 misc on the 2555 so I am exempt? or do I file my 1099 misc in a different way? another form possibly? The only way the software lets me setup the 1099 misc is as a business or self employed. I would like some advice or help before I go to a Tax professional and spend money. Hopefully I wont have too. Thx.What is the name of your state?
 


LdiJ

Senior Member
What is the name of your state? Overseas Cuba (Texas)


I am an Overseas Contractor (tax exempt) and recieved a 1099 misc from another company... why am I taxed on my 1099 misc when I was never in the USA doing the work?

I have worked as a contractor filed a 2555 every year and never paid taxes. Well now that I work for a different company they pay me a salary base. I pay SSN and Medicare which I believe is right. But what I think is not right is all my overtime is paid by separate company. I just got a 1099 misc from this other company that is in the US. I am using TaxCut software to do my taxes. I past the physical test of not being in the US making me tax exempt. I Setup the 2555 but I am still being taxed self employed tax. I am not being taxed for my salary as an employee. Is the self employeed tax wrong? Is there a way to put the 1099 misc on the 2555 so I am exempt? or do I file my 1099 misc in a different way? another form possibly? The only way the software lets me setup the 1099 misc is as a business or self employed. I would like some advice or help before I go to a Tax professional and spend money. Hopefully I wont have too. Thx.What is the name of your state?
Self employment tax is the equivalent of the social security and medicare taxes that you are paying on your regular salary. However instead of paying just the employee share, you are having to pay the employer and employee share.
 

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