Hi,
I have a question on Foreign Earned Income Exclusion for self-employed.
When I enter the Gross Fit from Schedule C to Foreign Earned Income Exclusion, they also ask for "Deductions Related to Foreign Earned Income".
When I entered business expeses from Schedule C to here, my foreign income for exlucsion is reduced by this amount. I was expecting full exclusion of foreing earned self employment income.
When I did NOT enter the business expeses from Schedule C to "Deductions Related to Foriegn Earned Income", then I do get full exclusion which is puzzling to me.
Why is it that I get full foriegn income exlucsion when I did not enter the deductions and I don't get full exclusion when I enter the business expense? Is "Deductions Related to Foreign Earned Income" just for moving expenses, etc?
Thanks
