USA Foreign Tax Credits and Self-employment tax


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Say I made 175k USD in 2020. I was a resident of Canada for Q1, and a US resident for the rest of the year. Im a dual citizen.

I earned 25k USD while a resident of Canada (Q1 2020) and paid Canadian income taxes on this 25k. I will claim this on Form 1116 for a FTC (foreign tax credit).

Question:

On this 25K USD Canadian sourced income I also paid CPP (Canadian Social Security). FTC doesnt cover self-employment tax. Would I be able to deduct the CPP paid on this 25K against the self-employment tax owed? Normally I would write "EXEMPT" on Form 1040 (Schedule 2) line 4 "Self-employment tax" as Canadian-US have a Totalization Agreement.
 
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Link from SSA said:
A certificate of coverage issued by one country serves as proof of exemption from Social Security taxes on the same earnings in the other country. Generally, you will need a certificate only if you will be working in the other country for more than 183 days in a calendar year. If you will be in the other country for 183 days or less, a certificate will not be needed unless the other country requests that you obtain one.
 
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So if I am understanding correct, I can exempt myself from social security on the Canadian sourced income in Q1?

The same income I will deduct from my SE calculation and include an explanation with the proof of exemption.
 
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I would include in the explanation that the applicable period is (365*.25=90) <183 days, thereby exempting you from needing to furnish a certificate.
 

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