You need to delete your W-2 and probably the wage worksheet. Do not enter a 'dummy' W-2.
With your return open
- Open the foreign earned income section
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On the first screen it will ask you what form your foreign income was reported on, you need to check statement from my foreign employer (converted to USD)
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On the next screen enter your Foreign wages
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Continue through the screens answering the questions
If your foreign income is greater than the foreign earned income exclusion and housing exclusion, you can use foreign tax credit to help offset some of the remaining foreign income.
Please note, if 2018 is your first year using the foreign earned income exclusion, you must use it every year going forward (when you are overseas) or the IRS will consider it revoked and you cannot use it for 5 more years. As Australia has high taxes, you may do better with only using the foreign tax credit. Just a thought.
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