Get your taxes done using TurboTax

Yes, he can apply the Foreign income Exclusion, take the credit, or a combination thereof. Currently, the US does not have a totalization agreement with India according to this source so he would be subject to the self-employment tax in the US.  Here are some things to consider.

1. US Taxpayers living in other countries have the option of taking a foreign tax credit or Foreign income Exclusion.(FEIE)
2. If the Foreign Earned income Exclusion is elected, each taxpayer on a return may exclude up to $126,500 of their income in 2024.
3. Foreign Earned income eligibility is based on the Physical Presence Test or Bonafide Presence Test. 
4. If the Foreign Earned Income exceeds $126,500, a taxpayer is eligible to take a foreign tax credit for the remainder of income beyond the $126.500 limit.
5. If the foreign tax rate is fairly low, it may be more advantageous to exclude your foreign income because the foreign tax paid is insignificant. 
6. If the foreign tax rate is high however, it may be more advantageous to take the foreign tax credit (FTC) especially if the foreign income is high.

So now, you probably wondering how to report this?  Here is the order that I suggest. First report the Foreign income and see if it can be excluded.

1. Click on Federal 
2. Click on Wages and Income  
3. Scroll down to Less Common Income
4. On Foreign Earned Income and Exclusion, click on the start or update button. 

Now report this income on a Schedule C by going to Business Income and Expenses.  Here you will report his income and expenses to determine the self-employment tax. After this is complete, you will exclude the net income amount by doing this. 

1. Select Wages and income
2. Less Common income
3. Miscellaneous Income, 1099-A, 1099>start
4. Scroll to the bottom of the page to Other Reportable Income
5. Other taxable income, answer yes
6. Then give a brief description of the income and the amount listed. Here you will list this as Foreign Self-employment income excluded and record the net income as a negative number by placing a minus sign in front of the amount. All that is left in your return is the self-employment tax and an adjustment in Schedule 1 deducting 1/2 of the self employment tax.

If you decide to claim the foreign tax credit if a portion of his income is over  $126,500, you will report that here.

Go to Federal

1. Deductions and credits 
2. Estimate and other taxes paid 
3. Foreign Tax Credit>start or revisit

As far as Turbo Tax reporting this accurately, we do have an accuracy guarantee policy in place. Please select that link for further information.