Turkey has a treaty but no totalization agreement — and the lira makes the arithmetic move.
There is a US–Turkey income tax treaty, so Turkish income tax is creditable. There is no totalization agreement, so US self-employment tax at 15.3% applies with no relief. What is distinctive here is currency: sustained lira depreciation means the exchange rate you use, and when you use it, materially changes the dollar figures on your return.
Tax snapshot — Turkey
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Sources: IRS Publication 54; IRS Publication 901; US–Turkey income tax treaty (1996, in force 1998); SSA totalization agreement list; Rev. Proc. 2025-32. Checked 1 September 2026.
What that means on your return
Currency translation is not a formality in Turkey. Income and foreign tax paid are translated into dollars, and with a rapidly depreciating lira the choice between an average rate and the rate on the date of payment can change both your income and your credit noticeably. Use a consistent, documented method.
Turkish social security (SGK) contributions are not creditable income taxes, and with no totalization agreement they buy no relief from US self-employment tax either.
Rates reach 40%, so on employment income the credit is usually competitive with the exclusion — subject to the translation question above.
Consultants and remote workers, a large share of Americans in Istanbul, pay the full 15.3% SECA on net self-employment income.
Questions I get about Turkey
Which exchange rate do I use for Turkish income?
Income and foreign tax are translated into dollars, and with a depreciating lira the method matters. Use a consistent, documented approach — an average rate or the rate on each payment date — rather than mixing the two across a return.
Do I pay US self-employment tax in Turkey?
Yes, at 15.3% on net self-employment income. There is no US–Turkey totalization agreement, so the treaty's income tax relief does not reach social security.
When is my return due?
15 June, under the automatic extension for filers living abroad. Form 4868 moves it to 15 October, and I file the extension free.
Do I have to file an FBAR for my Turkish bank account?
If your foreign accounts together passed $10,000 at any point in the year, yes. You can file it free through FinCEN's own system. The non-willful penalty for not filing is $16,536.
I have not filed for several years. What now?
The Streamlined Foreign Offshore Procedures: three returns, six FBARs and Form 14653 certifying non-willfulness. Penalties are waived. Note that the IRS terminated the separate Delinquent FBAR Submission Procedures around 1 July 2026.
Filing from Turkey this year?
Twenty minutes with the Enrolled Agent who will prepare and sign it. Complete return, $599.
An IRS Enrolled Agent working only on US tax for Americans living abroad. I prepare and sign every return myself — 17 years in practice, 12 of them as an Enrolled Agent.