@embrewer , what I found is a lot of confusion and outright errors.
At the IRS, their suggestion is outdated ( form change and incorrect) -- they suggest deleting the entry on form 1040 ( since updated) to zero and writing in in "Exempt -- see attached statement " -- however the new form does not allow this and more importantly this will still leave the adjustment ( 1/2 of Self-Employment ) to the AGI still operational -- so it has to be done on form SE.
At TurboTax -- the help text for SE worksheet refers to wrong lines ( when in forms mode ) and in step-by-step mode there is no way to access part-II, line 7 which reads " LESS other SE exempt non-farm profit or (loss) ..... see help.
So the way I solved this is -- in step by step mode --- Business Income & Expenses -> Schedule-C ( complete this as needed) --> then go down to "Business Taxes" -- select update --- next screen Business Taxes , select Self-Employment Taxes --> Yes ----> Make Adjustments --- here enter a negative income equal to the excluded income. This does achieve the result needed.
The best and "correct" way to achieve the result is to go into forms mode --- select "Schedule-SE work sheet". Here go down to part-II line 7 -- " LESS Other SE Exempt non-farm profit or (loss).... " select the entry space , right click on the + sign; in the back-up sheet enter " US-UK Totalization agreement and per IRC Section 3111(c) and Section 1401(c) " and enter the excluded income as a positive number.
In any case you have to file return by mail because you have to include the "certification of coverage" each year with your return.
I hope this helps and of course , if you need more help, just ask
stay safe ( from delta et al )
