topic Where do I enter foreign self employment income? Turbo Tax is telling me I need to enter it in the business section but I'm not finding it? in Deductions & credits

Where do I enter foreign self employment income? Turbo Tax is telling me I need to enter it in the business section but I'm not finding it?

joela316 — Wed, 05 Jun 2019 06:27:41 GMT

To report your foreign self-employment income: How to ent...

Tonita — Wed, 05 Jun 2019 06:27:43 GMT

To report your foreign self-employment income:

How to enter Foreign Income

• Go to Federal > Wages & Income

• Scroll down the page to the last section Less Common Income and select Show More

• Select Start to the right of Foreign Earned Income and Exclusion

• Answer Yes to Did you make any money outside of the U.S. This includes foreign self-employment income, as stated at the top of the page.

• Proceed through the interview to enter your foreign income.

Re: Where do I enter foreign self employment income? Turbo Tax is telling me I need to enter it i...

DanaB27 — Thu, 23 Jan 2020 17:32:55 GMT

Yes, if you have foreign self-employment income then you will have to enter it in the business section (Schedule C) and in the Foreign Income section of TurboTax.

To enter the self-employment income:

Login to your TurboTax Account
Click "Work on other tax breaks"
Click "Federal" from the left side of your screen
Scroll down to “Self-Employment” and click "Show more"
Click “Start” next to “Self-employment income and expenses”
TurboTax will walk you through the questions.

To enter the information in the foreign section:

Click "Federal" from the left side of your screen
Scroll down to “Less Common Income” and click "Show more"
Scroll down to “Foreign Earned Income and Exclusion” and click “Start”
Choose “A Form 1099-MISC or other self-employment income” and click “Continue”.
TurboTax will walk you through the questions.

Re: Where do I enter foreign self employment income? Turbo Tax is telling me I need to enter it i...

seberino — Tue, 10 Mar 2020 17:13:33 GMT

Are you saying foreign self employment income needs to be entered TWICE?

Once as foreign income and again in the self employment section?

Won't that mean people are taxed TWICE for SAME income?

Thanks,

Chris

Re: Where do I enter foreign self employment income? Turbo Tax is telling me I need to enter it i...

SusanY1 — Tue, 10 Mar 2020 17:29:41 GMT

The second time you aren't re-entering the income (although it kind of seems that way!) you are just designating that income as foreign-source so that you can then exclude it from income tax. You are essentially untaxing it by entering it the second time!

Once you designate it as foreign-source income you will then be able to determine if you can exclude it under the Foreign Earned Income Exclusion or take a credit for taxes paid on the same income to another country.

@seberino

Re: Where do I enter foreign self employment income? Turbo Tax is telling me I need to enter it i...

seberino — Tue, 10 Mar 2020 17:51:33 GMT

Thanks. I don't know if I made this clear but I did all my work in USA for foreign companies.

I cannot exclude any of this foreign income because it wasn't performed outside the USA.

In the "Income & Expenses" page of TurboTax there are rows for lots of different types

of income including: W-2, self employment and Foreign Earned Income.

What is confusing is that my contractor work is foreign AND self employed.

If I enter it TWICE, first in the "self employment" section and then again in the "Foreign Earned Income" section it makes my taxes go up dramatically so I don't think I'm specifying it correctly still. It still

seems like I'm being taxed twice.

Chris

Re: Where do I enter foreign self employment income? Turbo Tax is telling me I need to enter it i...

JohnB5677 — Tue, 10 Mar 2020 18:18:31 GMT

You do not have to post it as foreign income. If you are living and working in the United States as a US citizen, Green Card Holder or even as a non-US Person, then your income is US-sourced. Even if you are working for a foreign company while you are in the United States, it is still considered US-sourced income.

See this article to post your information: Foreign Company Independent Contractor

Re: Where do I enter foreign self employment income? Turbo Tax is telling me I need to enter it i...

Worldly — Sun, 05 Apr 2020 15:23:46 GMT

So I using TT Home & Business, and I am having to enter in foreign self-employment income for my wife's business (entirely in a foreign country). I have entered her foreign income in the personal section under "Foreign earned income and exclusion" and it was identified to be exclude, but I am being told I have to enter in her business in the Business section. I have entered in her business but not sure how to enter in her income as foreign income in this section. She is self-employed and doesn't have any W-2, MISC. ect. How do I enter it in without getting taxed on it?

Re: Where do I enter foreign self employment income? Turbo Tax is telling me I need to enter it i...

KarenJ2 — Sun, 05 Apr 2020 16:12:58 GMT

Enter her income and expenses in the Business section,
Then you should go to the foreign earned income exclusion section
On the first screen, check box Form 1099-MISC or other self-employment income.
Then on the next screen enter her Gross Profit from her business
When you get to the screen Deductions Related to your foreign earned income you need to enter her business expenses that relate to her foreign income (probably all of her expenses)
Go through the screens answering the questions all the way to the end of that section.

Please note that the foreign earned income exclusion is only to exclude income tax. It cannot exclude self-employment tax.

Re: Where do I enter foreign self employment income? Turbo Tax is telling me I need to enter it i...

Worldly — Sun, 19 Apr 2020 02:27:59 GMT

Thank you for the response but under the Business Section you can only enter in a 1099-MSC or K for income. The Foreign earned income exclusion section is in the Personal Income section which I have already done.

My problem is that I have entered my taxes in TT 3 different ways. Every time I enter in my wife's income in the Business section(1099-MISC or K), regardless of entering in the foreign exclusion first, it shows that I owe taxes. And not a little amount. I should not owe any taxes on her income as it is foreign, and the US has a tax relationship with her working country that she should not be taxed..

I am beginning to think if I should be entering her business in the system as it is not even US based? Should I just enter it in as Personal income in the Foreign earned income exclusion section?

How do I not get double taxed for foreign income???