I have been searching through this Reddit regarding Self-Employment and also posts regarding the Totalization Agreement, as well as SSA and IRS guides, and my wife has made several calls to the Japan Pension office. Still I am left confused as to whether we need to continue to pay Self-Employment tax to IRS if I have moved to the US permanently.
For context, I am self-employed artist having moved here with my Japanese citizen wife who is currently a green card holder (but plans to give it up this year). We have payed into SSA for over 20 years so have more than enough points to eventually receive SS. We have been paying into Japan Pension since we moved here in 2020 and have also been paying Self-employment tax to the IRS. Our accountant though was wondering if there is some way to use the Totalization Agreement certificate to NOT pay self-employment tax in the US, but he also isn't sure as that agreement seems to be for people living in a country only temporarily. I am quite confused.
A. Do we just need to continue paying both US SS/Medicare and Japan Pension if we plan to live here for the rest of our lives?
B.If not – how do we NOT pay self-employment tax? Do we simply not pay it? or do we need some proof that we are paying Pension here (is this the same certificate described in the Totalization Agreement, or something else)?
Apologies if this should be obvious, or if its been answered already but I can't seem to figure this out. Thank you.
by dan_kitchens