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Let's make sure it was entered correctly. The exclusion amount should show on line 8 of Schedule 1 and Form 1040. Please double-check. Do you have other type of income besides the foreign income? If you do, after applying the exclusion, It is possible you might still owe if you did not have enough tax withholding and credits to cover you other type of income. To file Form 2555 Foreign Income Exclusion, here are the steps:
In TurboTax online,
After you enter the information, if you qualify for a foreign earned income exclusion, the program will prompt you to continue to the Foreign Income Exclusion section. It will generate a Form 2555. To qualify, you have to live outside the United States for at least 330 days during 12 consecutive months. For more information, please see Foreign income and exclusion and Extension.
Thanks for your instructions. You said
The exclusion amount should show on line 8 of Schedule 1 and Form 1040. Please double-check.
However, I was unable to navigate to the actual forms (that get submitted to the IRS.) However, in the TurboTax program, I followed your second set of instructions and filled in all the information. Unfortunately, in the REVIEW section, it still states that I had $12,000 TAXABLE INCOME which is incorrect. Besides income from my foreign job and stimulus checks, I had only a small amount of interest ($200) from my US bank account which I did state with the 1099-INT form. Where is it pulling this extra TAXABLE INCOME from? How do I navigate to the mystery sources of income? Is there a direct route other than re-answering all the questions? Thanks so much!
In order to view the actual forms, you will have to pay first. However, you can access "Preview 1040" to only review your Form 1040 to verify info.
Here are the steps:
In TurboTax online,
Thank you once again. I successfully followed your instructions and viewed the 1040 Preview. Unfortunately, it still shows the same figure of taxes to be paid. It really looks like my Form 2555 info simply didn't get properly added. I'm stumped! It should say zero taxes or possibly a few dollars from interest on my US bank interest.
Do you see an entry from Form 2555 on Schedule 1 line 8 or 22? If you enter the information correctly in the program, you should have the amount being placed there.
I will suggest you to use TurboTax Live which allows our tax expert to walk you through the process to see what has gone wrong.
To access TurbTax Live, click here: TT Live
I followed your instructions and see that the Form 2555 info was indeed entered correctly but somehow, some other sources of income seem to also have crept in. I think I'll take your advice and seek help from an expert. Thanks for your assistance!
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