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Level 1
posted Apr 8, 2022 7:58:01 AM

How and where on the Turbotax (self-employed) program do you input foreign earned income for Form 2555? I live and work abroad full time.

I qualify for an exclusion under the bona fide residence test, but i see nothing on turbotax federal for Form 2555.

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1 Best answer
Expert Alumni
Apr 8, 2022 9:49:37 AM

 Follow these steps:

  1. use the magnifying glass
  2. enter foreign income
  3. click the magnifying glass beside foreign income
  4. click the jump to foreign income link

Alternatively, go to federal income and scroll down to Less Common Income.

 

If you earned more than you can exclude, you will have regular income to report. If you paid taxes in another country, you will file form 1116 for a credit- usually. In that case. follow these steps, Where do I enter the foreign tax credit (Form 1116) or deduction?

 

 

OR go to federal income

4 Replies
Expert Alumni
Apr 8, 2022 9:49:37 AM

 Follow these steps:

  1. use the magnifying glass
  2. enter foreign income
  3. click the magnifying glass beside foreign income
  4. click the jump to foreign income link

Alternatively, go to federal income and scroll down to Less Common Income.

 

If you earned more than you can exclude, you will have regular income to report. If you paid taxes in another country, you will file form 1116 for a credit- usually. In that case. follow these steps, Where do I enter the foreign tax credit (Form 1116) or deduction?

 

 

OR go to federal income

Level 1
Apr 9, 2022 5:24:02 AM

Thank you!  I was able to report my income as foreign earned and qualify for the exclusion (Form 2555).    I then deleted the same income from the "self employment income and expenses" section where I had initially reported it,  but I'm not sure that was correct.  I was worried about that amount being duplicated and reported twice.   However, without income reported in that section, TurboTax is not able to complete the calculation of home office expenses.  What do you advise?  

Level 1
Jan 26, 2024 12:56:08 PM

Hi, did you get an answer to this?

 

I am trying to work out how to report income through a foreign disregarded entity (limited company in the UK). I'm not sure whether to complete this as self employment in Turbotax, or as foreign earned income, or both.

Expert Alumni
Jan 26, 2024 6:47:04 PM

Assuming that TurboTax will not handle both foreign income for the exclusion and the calculation for the home office deduction - I have not checked, but this seems possible - I would report the income as foreign income as Amy noted above, but adjust your net self-employment income by what would have been the home office deduction had your office been in the US. 

 

Just remember that the same rules would apply no matter where you are. Document, document, document.