In addition to a US LLC I have a Romanian SRL. How do I enter my foreign self-employment income?

[Vanessa A]

To enter your foreign self-employment income click the following:

• Income and Expenses
• Scroll down and click Show more next to less common income
• Click Start next to Foreign Earned Income and Exclusion
• Put a check mark in A form 1099-Misc or other self employment income when asked what form was foreign income reported on
• Walk through the steps to enter your income and expenses. 

[bg1fford]

Thanks Vanessa! Two follow-up questions:

1. Does the IRS consider a foreign company, in this case a Romanian SRL, a pass-through entity for tax purposes? I.e., if I haven't taken out any earnings but the SRL has a profit, is that profit considered income?

2. As owner of the SRL, I assume that I would be responsible for issuing a 1099-MISC to myself, correct?

Thanks again!

-Bob

[ThomasM125]

The foreign entity would be considered a pass-through entity if it has similar characteristics of the same in the United States. In other words, if the partners or shareholders in the entity pay tax on their share of profits, as opposed to the entity paying tax on income, then it would be considered a pass-through entity.

If the entity is similar to a partnership and you have an active interest in the entity, you would not issue yourself a 1099-NEC form (they don't have 1099-MISC forms for reporting self-employment income anymore), since those earnings would be reported on a schedule K-1.

You do need to report your share of income from a foreign pass-though entity even if the income was not paid to you.

@VanessaA told you how to report foreign self-employment income, which is valid for applying for an exemption from foreign earned income, but it mentions in that section in TurboTax that you also need to report self-employment income in the self-employed income section in TurboTax.

You could make a K-1 entry for a partnership in TurboTax to report the foreign income, but if you don't have a federal ID number, you would have to mail your tax return in. 

The only way to report foreign income in the foreign income section in TurboTax and have it show as income on your tax return is to choose the A Statement from my foreign employer option on the What Form Was Foreign Income Reported On? page in the foreign income section in TurboTax. That will add the foreign income as wages on your form 1040. Any other type of income you have to enter where you would enter it if it had been earned domestically (K-1 form, 1099-NEC, 1099-Misc for rent income). 

@bg1fford 

[Edited 1/17/22 3:21 PST]