I am going to begin working remotely for a U.S. company in January from Chile as a W-2 employee. They offered me the option of 1099, but if I still have to pay Medicare/Social Security tax then the company contribution towards those cuts it in half.
All I had to do was tell them, then request that they don't withhold federal and state income taxes. For that I filled out IRS form f673. As soon as I get to Chile I'm going to start declaring income and make it my tax home. I think foreign earned income exclusion for 2018 will be up to somewhere around $104,000. IRS has a page for the requirements:
https://www.irs.gov/individuals/interna ... quirements
Only thing I'm still not sure about is paying social security tax. U.S. has a Totalization agreement with Chile, but I'm not sure whether that means I can opt to pay tax to one or the other, or if I'm just exempt from any Chilean tax because I'm paying the U.S. tax.
If this works out for you I'd be interested in hearing about your experience.
- Rank: Chile Forum Citizen
- Posts: 155
- Joined: Wed Jul 26, 2017 10:12 am
- Location: Santa Cruz
The owner of the company is working on the offer letter for me to be there on site. Once I receive it, I'll see if there's any negotiating room for a remote gig. If it works out I will defiantly let you know of the finer details I encounter.