First of all, the foreign earned income exclusion applies to your self-employment income and reduces the income tax. However, it does not exclude the self-employment SE taxes. Please continue to read:
In order to include your self-employment income and SE taxes in your foreign income exclusion calculations, you would first have to enter your self-employment income under Schedule C.
- After sign into your account, select Take me to my account
- To your right upper corner, in the search box, type in schedule c
- Follow prompts
To allow the program to exclude the foreign self-employed income, you would then enter the foreign income amount under Foreign Income by following these steps:
- At the right upper corner, in the search box, type in foreign income and Enter
- Select Jump to foreign income
- Next screen, Did You Make Any Money Outside the United States? answer Yes
- On the screen, What Form(s) Was Foreign Income Reported On ? select A Form 1099-MISC or other self-employment income
- Follow prompts
The program will then exclude your self-employment income but will calculate the SE tax.
@janareye
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