US·UK Accountants

Glossary · US Tax

Schedule SE

Schedule SE calculates US self-employment tax — the Social Security and Medicare charge on self-employment income. Whether an American in the UK owes it often turns on the US-UK totalization agreement.

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By Sam H., Founder & Lead Advisor

ACCA · ACA · Reviewed by Katie M.

Self-Employment Tax (Form 1040)

In more detail

Schedule SE computes self-employment tax on net earnings from self-employment, funding US Social Security and Medicare. It is separate from income tax, and the Foreign Earned Income Exclusion does not reduce it. For a self-employed American in the UK, the US-UK totalization agreement usually determines which country social-security system applies: where UK National Insurance is due, a certificate of coverage can exempt the same income from US self-employment tax.

Does Schedule SE apply to your situation?

Cross-border tax turns on the detail of your circumstances. Book a consultation and we'll tell you exactly where you stand.