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Earned income from a 1099 of $2500 but turbotax states I owe over $3300 in taxes. I checked with HR Block and they estimated a return of $4000. What am I doing wrong?

 
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5 Replies
LeonardS
Expert Alumni

Earned income from a 1099 of $2500 but turbotax states I owe over $3300 in taxes. I checked with HR Block and they estimated a return of $4000. What am I doing wrong?

Could you please clarify what type of 1099 you received and where did you enter the1099 into TurboTax? 

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Earned income from a 1099 of $2500 but turbotax states I owe over $3300 in taxes. I checked with HR Block and they estimated a return of $4000. What am I doing wrong?

I worked as a missionary in Africa last year and the 1099 was from the NPO that I worked with. I entered the amount under income. 

LeonardS
Expert Alumni

Earned income from a 1099 of $2500 but turbotax states I owe over $3300 in taxes. I checked with HR Block and they estimated a return of $4000. What am I doing wrong?

Could you clarify the dates you were in Africa to determine if you qualify for the Foreign Earned Income Exclusion?  That may explain the difference between owing and getting a refund that you described in your post.

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Earned income from a 1099 of $2500 but turbotax states I owe over $3300 in taxes. I checked with HR Block and they estimated a return of $4000. What am I doing wrong?

I was in Africa from Oct 2020 - Dec 7, 2022

LeonardS
Expert Alumni

Earned income from a 1099 of $2500 but turbotax states I owe over $3300 in taxes. I checked with HR Block and they estimated a return of $4000. What am I doing wrong?

Based on the dates you have provided you will qualify for the Foreign Earned Income Exclusion (FEIE).  You will use Form 2555 Foreign Earned Income to claim your FEIE.  For tax year 2021 you may be able to exclude up to $108,700 of your foreign income.  This will account for the differences from owing to receiving a refund.

 

To enter your FEIE in TurboTax follow these steps:

  1. Sign in to your TurboTax account if it is not open.
  2. Click the search icon and enter foreign income in the search box.
  3. Click on Jump to foreign income in the results box.
  4. On the page Did You Make Any Money Outside the United States? click yes
  5. Follow the screen prompts to enter your FEIE.

This TurboTax link Do I need to report foreign income? has information you may find useful

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