Question: I got a letter from Soc. Sec. (not IRS) stating that they need clarification on the SE tax paid under the ITIN.  I filed a Sch C and paid SE tax. Do I need to amend and remove the SE tax?

Answer: I’m not sure what the content of the letter from SSA is, but the whole point of an ITIN is for ineligible SSN applicants to fulfill their tax obligations to the US government.

There is nothing in code section 1402 that exempts you from paying self-employment tax simply because you do not have a Social Security Number.

The letter from Social Security might simply mean that you’re not receiving credit from the Social Security Administration for SE tax paid because you do not have a valid SSN. If  you want credit, you need to qualify  and apply for a SSN.

References/Related Topics

Illegal immigrants who use ITIN number for employment

Undocumented entrepreneurs: No Social Security number, owning a business

***Disclaimer: This communication is not intended as tax advice, and no tax accountant -client relationship results**

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