According to the IRS link, you may qualify to exclude this pay as foreign income exclusion. in fact, Certain U.S. citizens or resident aliens, specifically contractors or employees of contractors supporting the U.S. Armed Forces in designated combat zones, may now qualify for the foreign earned income exclusion. To report this in Turbo Tax:
To enter Foreign Earned Income -
- Click on Federal
- Click on Wages and Income
- Click on I'll choose what I work on (if shown)
- Scroll down to Less Common Income
- On Foreign Earned Income and Exclusion, click on the start or update button
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