topic Solo 401K and foreign earned income exclusion -- turbotax error? in Deductions & credits

Solo 401K and foreign earned income exclusion -- turbotax error?

expatsp — Thu, 06 Jun 2019 09:53:19 GMT

I asked Turbotax to calculate the maximum amount I can donate to a solo 401K, elective deferral + profit sharing. In calculating profit sharing, it appears not to take into account that I've excluded part of my income with the FEIE. Is this indeed a flaw, or should I trust the number that Turbotax provides?

From IRS Pub 560:

dmertz — Thu, 06 Jun 2019 09:53:20 GMT

From IRS Pub 560:

Net earnings from self-employment doesn't include items excluded from gross income (or their related deductions) other than foreign earned income and foreign housing cost amounts. [Emphesis added.]

IRS Pub 560: https://www.irs.gov/pub/irs-pdf/p560.pdf">https://www.irs.gov/pub/irs-pdf/p560.pdf</a>