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Foreign Earned Income Exclusion Not Working

Also see my comment on old thread: https://ttlc.intuit.com/community/tax-credits-deductions/discussion/foreign-earned-income-exclusion-...

 

I've filled out Form 2555 (via the Foreign Earned Income Exclusion) section on TurboTax. It's brought my taxable income down to 0, yet TurboTax is still saying I owe 14% SE tax on my W-2 income, the same income that is exempt under Form 2555. What's the trick?

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1 Reply
DaveF1006
Expert Alumni

Foreign Earned Income Exclusion Not Working

No. There is no trick. Even though your foreign income is excluded, you still may owe FICA taxes if these were not reported on your W2.  You are still responsible for that. 

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