Correct. In my case, I will not be using the FEIE exclusion.
I report K-1 income on Part II, line 2 of the Schedule SE Adjustments Worksheet. If I reverse that by adding negative income in Part II, line 6 (Other nonfarm profit or loss), that reduces SE income to zero and eliminates the tax (as if proper under the totalization agreement) but leaves me with no earned income and unable to claim an IRA deduction.
(If I do not reverse the SE income, the K-1 business income is picked up on Schedule E and treated as earned income, so it is not a K-1 issue so far as I can tell.)
So, thanks to each of you for your suggestions, but so far no fix. I will keep experimenting.
