@cdr13 , while I agree with @Critter-3 instructions on how to report foreign earned income for purposes of exclusion from US taxes ( up to the limit declared by the IRS each tax year ), I would just like to add ---
In case of self-employed foreign earned income, after reporting the income ( gross less the allowed expenses per US laws ),on Schedule -C, you need to report this net income just as if you have had foreign wages i.e. follow the steps described by @Critter-3 --- only difference being this time you use the net from Schedule-C instead of the income statement from your employer ( if you were a wage earner ).
Also note that for self-employed whether living abroad ( foreign tax home ) or domestic, the schedule-C would generate Schedule-SE for purposes of collecting SECA ( equivalent of FICA from wage earners except you get to pay the whole 15.3 % instead sharing 50-50 with your employer ). However, if there is a Totalization agreement between US and the country where your tax home is , then you may have to take into account as to if you are liable or not for SECA on your US filings.
pk
