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Get your taxes done using TurboTax
TurboTax allows you to remove self-employment tax from your tax return.
Step 1: Remove Schedule SE
- On the PERSONNAL tab, choose Other Tax Situations
- Scroll down to Business taxes
- Select Self-Employment tax
- Choose Make Adjustments
- Enter your net self-employment income as a negative amount
This removes self-employment tax and the deductible part of self-employment tax from Form 1040. However you still need to adjust Form 2555 to remove the S/E tax adjustment.
Step 2: Remove S/E adjustment from Form 2555
- Click on the PERSONAL tab
- Select Personal Income
- Scroll down to Less Common Income
- Update Foreign Earned Income Exclusion
- Keep going until you see Deductions Related to Your Foreign Earned Income
- Remove your Self-Employment tax adjustment
Attach a copy of the statement to Form 1040 or Form 1040-SR from the appropriate agency
of the foreign country verifying that your self-employment income is subject to social security coverage in that country. Enter “Exempt, see attached statement” on Schedule 2 (Form 1040), line 4.
April 1, 2021
6:10 PM