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Deductions & credits
@taxing times , yes indeed ( name that is ).
1. Both a salary ( employment ) and self-employment ( sole proprietor / schedule--C ) income are eligible for foreign earned income exclusion.
2. For self-employment income fill out schedule-C; note down the net income that shows up as business income
3. For salary , you do not fill out the W-2 area but under -- "personal income "--> "I will choose what I work on ..." ---> from the list of income categories, way at the bottom under " Other uncommon incomes", select "Foreign Earned Income and Exclusion" --- here for total foreign income recognize the total of your foreign salary and Self-employment net income ( above). From here on follow the instructions for filling out form 2555 and follow through.
4. Then under deductions and credits , tell TurboTax you have foreign taxes paid to report and follow through --- note that ONLY foreign taxes on foreign income not excluded is reported as foreign income on form 1116 as also the taxes paid on that foreign income..
Does this make sense ? If you need more specific help, please consider sharing more of the actual situation here ( No personally identifiable info please ) or use PM with more details. I will circle bcak once I hear from you .
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