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ihatetaxes
Returning Member

FEIE not applied?

I overpaid as I filed for an extension to make my valid tax year 330 days abroad for the mandatory insurance requirement. When I actually did my taxes, turbotax said I was required to pay none, as I filed for the FEIE. This exclusion probably doesnt apply to investment income does it? It appears turbotax did think it does. I would also like to note, while trying to figure out how to file freelance income, turbotax kept presenting business paperwork, (like c-ez, schedule sc, irc section 172 b 3, and investment forums ..form 2555, form 8949, schedule d) to which I just rushed through, as I found no way around this (the business forms). I just put down my real expenses, and really not in the green for 'business'. I kinda think I will have made taxes more difficult for next year though. Was what I paid in taxes, actually the self employment tax, is that exempt from the FEIE? Is there a specific way I can find a breakdown? I dont want to trigger an audit, as this was such a mess for me, and I dont trust myself in having done it correctly.

 

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2 Replies
Carl
Level 15

FEIE not applied?

Your freelance income is self-employment income. You are required to report all self-employment income on SCH C as a part of your personal 1040 tax return. In addition to regular taxes, if you have more than $400 of SE income, that self-employment income is also subject to the additional self-employment tax of 15.3%.

"This exclusion probably doesnt apply to investment income does it?"

Depends on the type of investment income. There are to many possibilities to cover here. But if you paid foreign taxes on that income, then the IRS gives you a credit for those foreign taxes paid.

ihatetaxes
Returning Member

FEIE not applied?

more than $400, but earned while abroad, does that not get the feie exclusion? Also, the only client I had decided to misreport every single receipt among other shady stuff, and claimed to have paid me double what they did.  Investments were in US stocks with US brokerages.

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