Hi Dave,
Thanks for your guidance! I’ve made the modifications as you suggested. I just want to confirm whether I’ve entered everything correctly.
I’m filing as Married Filing Jointly (MFJ). My spouse lives in India, but we are treating him as a resident alien for tax purposes after his approval. I have entered my W-2 income and investments as usual. My husband is a small business owner, and based on your advice, I have reported his income as follows:
Self-Employment Income and Expenses Section:
- I entered his business income and expenses here.
- This correctly calculated his self-employment tax after deducting business expenses.
Foreign Earned Income and Exclusion Section (FEIE):
- I added his foreign-earned income, and he qualifies under the Bona Fide Residence Test.
- His half of the self-employment tax is automatically deducted.
However, I have a doubt about the FEIE section. It asks for the Gross Profit from self-employment. My question is:
👉 Should I enter his Business Income ($4,803) or Net Income ($481, after deducting expenses)?
For context:
- Business Income: $4,803
- Expenses: $4,322
- Net Income (after expenses): $481
I want to make sure I’m entering the correct amount. Is this process complete, or am I missing any additional steps?
Thanks in advance for your help!
@DaveF1006
