topic How do I include the 1099-NEC in my foreign earned income tax exclusion (right no, TurboTax has me paying federal income taxes on this income). in Deductions & credits

How do I include the 1099-NEC in my foreign earned income tax exclusion (right no, TurboTax has me paying federal income taxes on this income).

leszafran — Mon, 09 Mar 2026 04:46:17 GMT

Re: How do I include the 1099-NEC in my foreign earned income tax exclusion (right no, TurboTax h...

LeonardS — Sun, 27 Feb 2022 17:15:14 GMT

Could you please clarify if you:

Received the 1099-NEC for work performed while in a foreign country,
Have you met either the physical presence test or bonified resident test to qualify for Foreign Earned Income Exclusion,
What dates were you outside the US in a foreign country?

Your answers to these questions will determine how to properly include your 1099-NEC in your tax return.

Re: How do I include the 1099-NEC in my foreign earned income tax exclusion (right no, TurboTax h...

leszafran — Sun, 27 Feb 2022 17:25:12 GMT

1. I lived in a foreign country while performing the work (for an international company with three headquarters around the world).

2. I meet requirements for both tests (I haven't lived or worked in the US for almost ten years now). I am a full-time resident of another country. I am 100% sure that I meet this requirement. (TurboTax agrees)

3. Almost the entire year (with the exception of the Christmas holiday - less than two weeks).

The rest of my income is correct in TurboTax (meaning it is falling under the foreign earned income exclusion). For some reason, this 1099-NEC is requiring me to pay self-employment federal tax in TurboTax.

Re: How do I include the 1099-NEC in my foreign earned income tax exclusion (right no, TurboTax h...

LeonardS — Sun, 27 Feb 2022 18:54:19 GMT

Thank you for your reply to my questions.

From what you have stated it appears that the international company you work for issued you a 1099-NEC through their US headquarters. You need to contact them and ask why you received a 1099-NEC. How you report the 1099-NEC will be based on why they sent you the form, it may have been an error in which case they will issue a corrected 1099-NEC

Self-employed individuals that qualify for the Foreign Earned Income Exclusion (FEIE) can exclude their self-employment income as FEIE. However, they are required to pay SE tax on their entire net profit, even the amount they can exclude from income tax.

TurboTax is correctly requiring you to pay self-employment tax based on your entering Form 1099-NEC.