@hanco , please see my earlier reply -- you have to report the self-employment on schedule-C. Then since you have paid taxes on this income ( need to know which country, because this is valid ONLY for countries with tax treaty with the USA ), you have to file form 1116 ( in the search box " paid foreign taxes" and jump to first entry ) and in there show the income that you had from foreign operation and the taxes you paid to the foreign taxing authority.
Also note that you will have to pay Self-Employment Tax on the net income ( at 15.3% on most of it )
You do not enter this foreign income in "foreign Earned Income and exclusion" -- this will not show once the form 2555 is eliminated.
TurboTax is operating correctly.
Is there more I can do for you ?
