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What are Totalization Agreements, and do they cover income as well as social security/pension payments?

Totalization Agreements are formal agreements between the US and foreign countries to avoid double taxation of income through social security taxes. The Agreements only apply to the imposition of social security tax. If you are self-employed, your self-employment income is eligible for foreign earned income exclusions if you can satisfy the required conditions, but you are still subject to US self-employment tax (i.e. social security tax). However, if you are residing in a country that has a totalization agreement with the US and are subject to social security tax in that country on your self-employment income, you can be exempt from US self-employment tax. List of countries with signed Agreements with the United States.

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