Solved: Am I eligible for foreign earned income exclusion on my self employed income if I am a resident of another country and have done all my work there?
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Am I eligible for foreign earned income exclusion on my self employed income if I am a resident of another country and have done all my work there?

Trying to file my US tax returns as a self employed US citizen working abroad but don't see any option for foreign earned income exclusion

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Am I eligible for foreign earned income exclusion on my self employed income if I am a resident of another country and have done all my work there?

You will qualify for the exclusion on your self employment income if all of the following apply: 

Your tax home must be in a  foreign country , and you must be one of the following:

  • A U.S. citizen who is a bona fide resident of a foreign country or countries for an uninterrupted period that includes an entire tax year,
  • A U.S. resident alien who is a citizen or national of a country with which the United States has an income tax treaty in effect and who is a bona fide resident of a foreign country or countries for an uninterrupted period that includes an entire tax year, or
  • A U.S. citizen or a U.S. resident alien who is physically present in a foreign country or countries for at least 330 full days during any period of 12 consecutive months.
Self-employment income:  A qualifying individual may claim the foreign earned income exclusion on foreign earned self-employment income.  The excluded amount will reduce the individual’s regular income tax, but will not reduce the individual’s self-employment tax.  



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New Member

Am I eligible for foreign earned income exclusion on my self employed income if I am a resident of another country and have done all my work there?

You will qualify for the exclusion on your self employment income if all of the following apply: 

Your tax home must be in a  foreign country , and you must be one of the following:

  • A U.S. citizen who is a bona fide resident of a foreign country or countries for an uninterrupted period that includes an entire tax year,
  • A U.S. resident alien who is a citizen or national of a country with which the United States has an income tax treaty in effect and who is a bona fide resident of a foreign country or countries for an uninterrupted period that includes an entire tax year, or
  • A U.S. citizen or a U.S. resident alien who is physically present in a foreign country or countries for at least 330 full days during any period of 12 consecutive months.
Self-employment income:  A qualifying individual may claim the foreign earned income exclusion on foreign earned self-employment income.  The excluded amount will reduce the individual’s regular income tax, but will not reduce the individual’s self-employment tax.  



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New Member

Am I eligible for foreign earned income exclusion on my self employed income if I am a resident of another country and have done all my work there?

Phillip, thanks for your response! Just to clarify then, does turbo tax automatically reduce my self employment income if I say I'm a resident of another country? It's still showing quite a high amount for my taxes owed but could be from self employment tax
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New Member

Am I eligible for foreign earned income exclusion on my self employed income if I am a resident of another country and have done all my work there?

The self employment tax is not effected by the exclusion, so that may likely be the reason for the high tax. Check the face of the return on line 57 to see the amount of self employment tax on your return. To look at the return do the following: 1.) Log in to your return 2.) Click on the tax tools link at the bottom of the left hand navigation bar 3.) Click on the tools link. 4.) Click on view tax summary in the Tools Center box. 4.) Click on preview my 1040 in the left hand navigation bar.
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New Member

Am I eligible for foreign earned income exclusion on my self employed income if I am a resident of another country and have done all my work there?

Thank you so much!
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Level 7

Am I eligible for foreign earned income exclusion on my self employed income if I am a resident of another country and have done all my work there?

after you enter your self employment income you need to go through the section "foreign earned income and exclusion". Also, if you live/work in a country that has a totalization agreement with the US and you pay into the foreign social security system, you can get a certificate of coverage and would not need to pay SS taxes.
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