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Level 2
posted Feb 6, 2023 8:00:44 AM

Tax return incomplete

I file my last tax return with Turbo Tax and I just received a letter from IRS saying that my return is incomplete. They ask me for schedule which is for self employed when I am just a employee in a big company.

Working and living in France makes it difficult to communicate with IRS or Turbo Tax; I don't know what to do to fix this mistake. I couldn't find a way to speak with anyone at Turbo Tax.

I must say that for a first time filing with Turbo Tax I am very disappointed.

Thank you for your help.

Carole

 

0 3 307
1 Best answer
Expert Alumni
Feb 6, 2023 8:41:24 AM

If the IRS has sent you a notice asking for a self-employed schedule (Schedule C), this indicates that the way your income was reported on your return suggested that it was self-employment income.

 

You should respond to the IRS notice as soon as possible to explain that your income was wages.

 

To report foreign wages in TurboTax:

 

  1. Click on Federal Taxes > Wages & Income  [If you're in TT Home & BizPersonal > Personal Income > I'll choose what I work on]
  2. In the Less Common Income section, click on the Start/Update box next to Foreign Earned Income and Exclusion.  (See Screenshot #1, below.)
  3. On the screen Did You Make Any Money Outside the United States? mark Yes and click Continue (Screenshot #2)
  4. On the screen What Form(s) Was Foreign Income Reported On? mark the selection that applies and click Continue. (Screenshot #3)
  5. Continue through the screens, entering the requested information.

For more information on the Foreign Earned Income Exclusion, see Foreign Earned Exclusion on the IRS website.

 

See further details in this thread.

 

3 Replies
Expert Alumni
Feb 6, 2023 8:41:24 AM

If the IRS has sent you a notice asking for a self-employed schedule (Schedule C), this indicates that the way your income was reported on your return suggested that it was self-employment income.

 

You should respond to the IRS notice as soon as possible to explain that your income was wages.

 

To report foreign wages in TurboTax:

 

  1. Click on Federal Taxes > Wages & Income  [If you're in TT Home & BizPersonal > Personal Income > I'll choose what I work on]
  2. In the Less Common Income section, click on the Start/Update box next to Foreign Earned Income and Exclusion.  (See Screenshot #1, below.)
  3. On the screen Did You Make Any Money Outside the United States? mark Yes and click Continue (Screenshot #2)
  4. On the screen What Form(s) Was Foreign Income Reported On? mark the selection that applies and click Continue. (Screenshot #3)
  5. Continue through the screens, entering the requested information.

For more information on the Foreign Earned Income Exclusion, see Foreign Earned Exclusion on the IRS website.

 

See further details in this thread.

 

Level 2
Feb 6, 2023 9:02:58 AM

Thank you very much for your help! I am going to reply to the IRS right away hoping that they won't ask me to file all over again.

Thank you. Carole

Expert Alumni
Feb 6, 2023 9:18:45 AM

You're welcome!