What is the threshold for filing if I am self-employed?

If you have self-employment income of over $400, you will need to file a US tax return.

Self-employed taxpayers will also need to include their Social Security and Medicare payments to their returns – this is called “Self-Employment Tax“. The self-employment tax rate is 15.3%. The rate consists of two parts: 12.4% for social security and 2.9% for Medicare.

However, the US has totalization agreements in place with 25 foreign countries which will affect this tax, and which government your social security contributions (or equivalent) are paid to. Read more on the Social Security website and check whether your country has an agreement in place with the U.S.

We have a handy guide to help you avoid self-employment taxes here

Also, check out our free, comprehensive tax guides!