During the interview process for TurboTax, you will first enter all income from self-employment (along with expenses), foreign partnerships, and any income reported on a W2. Foreign earned income not reported on a W2 is the only income entered in the section for the exclusion.
The exclusion interview section will ask you to input your net profit from your self-employment income. In this section it is not adding to your income but simply indicating the amount of income that you wish to exclude. You will also need to remove the adjustment to foreign income for one-half of the self-employment tax during the interview phase.
You will likely need to override the self-employment tax directly on Form 1040 and delete Schedule SE (this requires the desktop/download version of TurboTax). At this time, forms are still awaiting approval, so I cannot test that in the 2023 product to see if there is an easier way.
You need a specific certificate to attach to your tax return to show that you qualify to exclude self-employment tax on your return. This must be requested from the National Pension Service of Korea. For your wages as an employee, your employer must apply for the certificate on your behalf. Self-employed persons in Korea obtain it directly from the National Pension Service. I found some additional information on obtaining the certificates HERE. (Please note that I am generally familiar with this process, but I am not personally familiar with obtaining the certificates in your resident country.)
TurboTax does not have an expat tax service at this time. While this means our full-service experts cannot prepare your return, TurboTax software can certainly handle your return with some manual input.
When you're working on your tax return, please return to the Community to post questions as they arrive, and one of our employee experts or a knowledgeable member of the Community can offer the assistance you need to complete your tax return yourself.
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