I’ve been living in South Korea since November 2020 and I run my own business here. I already filed and paid all applicable income taxes to the Korean government. I'm a U.S. citizen and I’m now trying to file my U.S. taxes using TurboTax.
However, TurboTax keeps calculating additional U.S. tax on my foreign self-employment income — even though I’ve already paid taxes in Korea. I don’t have any U.S.-sourced income, and all of my income is from my business in Korea.
How can I properly report this to avoid double taxation?
I’ve heard about:
Form 2555 (Foreign Earned Income Exclusion)
Form 1116 (Foreign Tax Credit)
Reporting business expenses on Schedule C
But I’m confused about how to apply these correctly in TurboTax. Also, am I still required to pay U.S. self-employment tax (Social Security and Medicare) even though I paid everything in Korea?
I’d really appreciate clear, step-by-step guidance or screenshots if anyone has done this before. Thank you!
