This is my first year with foreign income. I live and work in the US. My husband lives in the US but works online for foreign income so is considered self employed. We file married jointly.
I have entered his income as foreign income, but when I enter it (again, essentially) as self employment income, his income doubles.
If I only do foreign income, his social security tax for the US doesn't come through.
What to do? Please remember I'm a beginner with this kind of income.
Thanks in advance
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Do not enter your husband’s income as foreign income even though he works remotely for a company overseas.
When you say, “my husband lives in the U.S.,” I’m assuming he is a U.S. citizen or resident alien. As such, all his income is taxable to the U.S. so his foreign self-employment would be treated the same as U.S. self-employment. Report all income and claim any ordinary and necessary business deductions.
The foreign earned income section allows U.S. citizens or residents working overseas to exclude some or all of their foreign income. There is no such exclusion for a U.S.-based worker.
Thank you, Ernie50-
The thing is we paid taxes in the foreign country on this income so we should get a foreign tax credit for that to offset what we pay in the US, right? How do I enter foreign taxes paid for the credit without entering foreign income?
Thanks again
Also, yes, he is a US citizen but works remotely.
Thank you, Ernie50. With a little more digging, I figured this out. I made some newbie mistakes. I appreciate you heading me in the right direction, and the other posts I was able to read to get things sorted.
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