AFP "certificate" to file with your US tax return as an expat

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mem
Rank: Chile Forum Citizen
Posts: 651
Joined: Tue Nov 24, 2015 11:18 am

AFP "certificate" to file with your US tax return as an expat

Post by mem » Tue Jun 11, 2019 1:00 pm

Can anyone provide some advice on how to get an official AFP certificate that you can file with your US tax return to show the IRS that you paid AFP and therefore do not need to pay the US Social Security tax due to the US/Chile totalization agreement?

Has anyone figured out a way to Efile with that certificate? From what I can tell I think it means I have to paper file (ugh) plus I need to figure out how to get that certificate (double ugh)

Appreciate any pointers

thisisreallycomplicated
Rank: Chile Forum Citizen
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Re: AFP "certificate" to file with your US tax return as an expat

Post by thisisreallycomplicated » Tue Jun 11, 2019 6:50 pm

I think you're asking about a Certificate of Coverage (form CHI/USA 4).

The instructions are in this pdf:
https://www.ssa.gov/pubs/EN-05-10175.pdf

You can try asking online here:
https://www.spensiones.cl/apps/consulta ... nsulta.php

If you were self-employed in Chile, when AFP's weren't required for self-employed people, read pages 68 and 69 in this pdf:
https://www.jct.gov/publications.html?f ... &no_html=1

This is the important part:
Under the Act, wages and self-employment income are exempt
from FICA and SECA to the extent that, under a totalization
agreement with a foreign country, the wages or self-employment income
is subject exclusively to the laws applicable to the Social Security
system of the foreign country. As a result, an individual’s
earnings are exempt from FICA and SECA in cases in which the
earnings are subject to a foreign country’s Social Security system
in accordance with a totalization agreement, but the foreign country’s
law does not require compulsory contributions on those earnings.
The Act establishes that such earnings are exempt from FICA
and SECA regardless of whether the individual elects to make contributions
to the foreign country’s Social Security system.
This is from 2005, so there may be something more recent, but I'm not aware of it. If you read the actual agreement, the language is pretty clear about self-employment. But lots of people still get confused about it. This thread is a good example (and where I found the above JCT info):
https://www.toytowngermany.com/forum/to ... us/?page=5

Also, if Chile won't issue one, the IRS's pub 54 says this:
If the authorities of the foreign country will not issue such a statement, either you or your employer should get a statement from the U.S. Social Security Administration, Office of International Programs, at the website and mailing addresses listed earlier. The statement should indicate that your wages aren’t covered by the U.S. social security system.
“Now it’s conspiracy – they’ve made that something that should not even be entertained for a minute, that powerful people might get together and have a plan. Doesn’t happen, you’re a kook, you’re a conspiracy buff!” – George Carlin

mem
Rank: Chile Forum Citizen
Posts: 651
Joined: Tue Nov 24, 2015 11:18 am

Re: AFP "certificate" to file with your US tax return as an expat

Post by mem » Tue Jun 11, 2019 9:52 pm

thisisreallycomplicated wrote:
Tue Jun 11, 2019 6:50 pm
I think you're asking about a Certificate of Coverage (form CHI/USA 4).

The instructions are in this pdf:
https://www.ssa.gov/pubs/EN-05-10175.pdf

You can try asking online here:
https://www.spensiones.cl/apps/consulta ... nsulta.php

If you were self-employed in Chile, when AFP's weren't required for self-employed people, read pages 68 and 69 in this pdf:
https://www.jct.gov/publications.html?f ... &no_html=1

This is the important part:
Under the Act, wages and self-employment income are exempt
from FICA and SECA to the extent that, under a totalization
agreement with a foreign country, the wages or self-employment income
is subject exclusively to the laws applicable to the Social Security
system of the foreign country. As a result, an individual’s
earnings are exempt from FICA and SECA in cases in which the
earnings are subject to a foreign country’s Social Security system
in accordance with a totalization agreement, but the foreign country’s
law does not require compulsory contributions on those earnings.
The Act establishes that such earnings are exempt from FICA
and SECA regardless of whether the individual elects to make contributions
to the foreign country’s Social Security system.
This is from 2005, so there may be something more recent, but I'm not aware of it. If you read the actual agreement, the language is pretty clear about self-employment. But lots of people still get confused about it. This thread is a good example (and where I found the above JCT info):
https://www.toytowngermany.com/forum/to ... us/?page=5

Also, if Chile won't issue one, the IRS's pub 54 says this:
If the authorities of the foreign country will not issue such a statement, either you or your employer should get a statement from the U.S. Social Security Administration, Office of International Programs, at the website and mailing addresses listed earlier. The statement should indicate that your wages aren’t covered by the U.S. social security system.
Thanks for the pointers thisisreallycomplicated. I figured alot of people deal with this sort of thing. I am going to file an extension with form 4868 until October so I can sort this out with the correspondence to get the cert. Devil is in the details for sure on all of this

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