I live in Costa Rica currently but I am a US citizen and pay US taxes. Contractors in the US have to pay federal income tax, self-employment tax and potentially state income tax. When you’re an employee, a company pays half of your Social Security and Medicare taxes. As an independent contractor, you pay 100% of the FICA taxes when you file your tax return. You also must pay the income taxes that weren’t withheld.
You need to also make quarterly payments each quarter to cover taxes or you will be fined.
Oh I see. That sounds tough. Frankly I have never understood the US system and personally I find it outrageous that the US allows so many to go without health insurance. Where I live healthcare is available equally to all, the quality is excellent, and prices for private treatment are low too. For example, braces for teeth and the whole course of treatment costs about 150 EUR. I know a lot of people in the US oppose that model for being 'socialism' but I think it is strange that people would be allowed to suffer high medical prices or denied treatment at all on ideological grounds.
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I live in Costa Rica currently but I am a US citizen and pay US taxes. Contractors in the US have to pay federal income tax, self-employment tax and potentially state income tax. When you’re an employee, a company pays half of your Social Security and Medicare taxes. As an independent contractor, you pay 100% of the FICA taxes when you file your tax return. You also must pay the income taxes that weren’t withheld.
You need to also make quarterly payments each quarter to cover taxes or you will be fined.
Oh I see. That sounds tough. Frankly I have never understood the US system and personally I find it outrageous that the US allows so many to go without health insurance. Where I live healthcare is available equally to all, the quality is excellent, and prices for private treatment are low too. For example, braces for teeth and the whole course of treatment costs about 150 EUR. I know a lot of people in the US oppose that model for being 'socialism' but I think it is strange that people would be allowed to suffer high medical prices or denied treatment at all on ideological grounds.