@pk Thanks for the reply. I could be the taxpayer. The business activity from self-employment is performed in a foreign country which is not located in the US or US territories. The taxpayer is a US citizen. The taxpayer is a tax resident of a foreign country, the tax home is in the foreign country, and is subject to foreign income tax there.
If my understanding of the tax treatment is not correct, then where should the taxpayer report on their tax return, the foreign earned income (the gross business income), and the business deductions (the business expenses), when the business deductions exceed the business gross income, and elected to exclude foreign earned income in prior years?
