A self-employed U.S. citizen, who is a resident of Luxembourg and subject to its coverage
laws, is exempt from paying Self-Employment Contribution Act (SECA) tax; however,
the individual must still file a U.S. tax return every year. When preparing the Schedule
SE (Form 1040), which is normally used to determine the amount of the SECA tax, the
worker indicates that the earnings are exempt under the agreement and attaches a photocopy
of the certificate of coverage issued by Luxembourg as proof of the exemption. See
RS 02001.795 for more information on certificates of coverage - U.S. - Luxembourg Agreement.