Employed & Self-Employed US Tax Qs

I currently work part-time, and am also self-employed. I am only recently just now sitting down to actually fill in my tax returns (I thought I could do it online but seems you have to have a pin which you can only get if you filed for 2008, which I didn't have to do, so paper copies it is) and wanted to double check with people in the same situation that I'm doing things correctly. I emailed the IRS a while ago to see which forms I needed to fill out as a US citizen living abroad who is employed and self-employed abroad (with no sales or income of any sort in/from the US). They told me to do the 1040 and that I would have to attach a Schedule C Form to account for "Profit or Loss from Business." Does this sound right?

Also, Form 1040, line 27 asks about self-employment tax, the amount of which you get by doing Schedule SE. However, I know there's that thing with an agreement between the US and UK to only tax income for social security once, by the country you reside in - a "totalisation agreement" or something like that. The Schedule SE instructions say if you want to be exempt from the US taxing your income for those purposes, you have to contact HMRC and have them write a statement saying your self-employed income will be taxed for those purposes in the UK. Has anyone done this and are they easy enough to get from HMRC? Schedule SE also says if they aren't willing to do it, to write to the SS Administration, Office of International Programs in Baltimore.  I rang HMRC and they told me to write to my local tax office to request a "Certificate of Residence."  I've not read anything about anyone else on here or other expat boards having to request these.  Is it necessary or will all that be included if I file for the Foreign Earned Income Exclusion?

As for the Foreign Earned Income Exclusion, I was resident in the UK for all of 2009.  Trips home don't count in the required 330 days, do they?

What's the difference between the 2555 and 2555-EZ?  I am not the most experienced at tax filing, as you can see!  Also, is form 2555 meant to be filled out in place of 1040, or is 2555 simply to claim the exclusion and therefore to be sent in with 1040?

Please help!

I don't know about the rest, but the 2555 is sent WITH, not instead of, the 1040. You should use 2555, not 2555-EZ if you have self-employment income.

Well that's at least some of my confusion cleared up, thank you!!

Dear SMS,

I'm afraid I don't have an answer, but the same question: how do I/we avoid having to pay the US tax on self-employed income that was earned in the UK and already taxed by the HMRC?  I thought we took care of this double-taxation hooey when we threw some chests of tea in a harbour or something... 

(Just to clarify, I too have been employed full-time this tax year as well as doing freelance journalism on the side (which is where my self-employed income comes in).)

Thanks for asking this question; fingers crossed that someone knows the answer!   

You still have to pay self employment to tax to the US unless you get a certificate

see below
I have researched this liek CRAZY and I have applied for my certificate
http://www.ssa.gov/international/Agreement_Pamphlets/uk.html

Thanks so much for the link, JennBean! 

I had caught wind of this "certificate" in my tax reading, but didn't know how to get one.  Have you been given any indication of when the certificate will come, or what you should do until you receive it (i.e. if it doesn't arrive before this year's tax return is due)?  I suppose if I sent away for it now, it could have a chance to make its way to me before the June overseas filer deadline...

Just checked out the Social Security link.  Hmmm.  That gives a lot more information than what I got on the phone today, and I certainly didn't include all those personal details in my letter to Inland Revenue/my HMRC Enquiry Office that I sent off today (I'm trying to get exemption from US taxing my UK-based self-employed income).  The woman from HMRC just told me to include my NIN.  I hope that's enough so this process isn't delayed.  I wonder how long it'll take.  I'm glad to see other people have heard of them and are trying to get one though.

Stink! Every time I start to feel like I might be getting my head around my taxes I find out more like this.  I'm also both self-employed and part-time employed.  I swear, my head is going to explode with all of this information.  I feel totally overwhelmed.  Thanks for the links.  Maybe they will help.

My understanding is this...
1. file as self employed with the HMRC so I pay the rigth taxes here
2. file UK taxes
3. file US taxes with this certificate ( I mailed mine 10 days ago or so)

I went self employed as of April 1st so I would be on the UK schedule so I havent exactly done it yet but yes it was a lot to get your head around!

If you dont have the certificate you pay self employment tax as the employer and employee plus medicare and ss.

good luck! keep us posted