I believe I have the solution, but I am not sure. comments welcome.
The tax on self-employment is also called social security tax. You can remove this tax if you live in a country with a totalization agreement (dual tax treaty). To enter this in Turbotax :
Goto : Other Tax Situations, Business Taxes and Deductions, Self-employment tax.
Press "Make adjustments".
Enter profit from business as a negative number, this will zero out the social security tax.
You are allowed to do so IF you have prior agreement from the IRS .
"To establish that your self-employment income is subject only to foreign social security taxes and is exempt from U.S. self-employment tax, request a certificate of coverage from the appropriate agency of the foreign country. If the foreign country will not issue the certificate, you should request a statement that your income is not covered by the U.S. social security system from the U.S. Social Security Administration. Attach a photocopy of either statement to your Form 1040 each year you are exempt from U.S. self-employment tax. Also print "Exempt, see attached statement" on the line for self-employment tax."
https://www.irs.gov/individuals/international-taxpayers/self-employment-tax-for-businesses-abroad
There is a related entry in the turbotax community you can search for : "The USA and Chile have a double taxation treaty for both income tax and social security tax. How do I zero out self employment tax in turbotax."
with an answer by @JeffreyR77 . Thank you!!!
