During 2022 I've traveled abroad and while abroad, worked as a contractor for a foreign company earning $11,000 USD. I've decided not to claim the Foreign Earned Income Exclusion. I am single and have no other income of any kind.
I'm now trying to report this income and I'm confused between the ways TurboTax offers to do so.
Entering $11,000 in the Self-Employment income section yields a Federal tax owed of $1,115 (10.1%). Isn't the self-employment tax 15.3%? Is this only for US-sourced income?
Instead, entering $11,000 in the Foreign Earned Income section (without claiming the Exclusion) yields a Federal tax refund of $417. Why would I not have to pay taxes on this? For the exercise, I pretended to claim the Exclusion and it brought down the amount to $0 (expected).
Am I supposed to report the $11,000 figure in both the Self-Employment and Foreign Earned Income sections? Doing so yields $2,469 in Federal tax owed (22.4%).
