My 1099 income from US company was earned while living/working overseas. Where should this income be entered? 1099-MISC? Foreign income and exclusion? Both? Elsewhere?

[CarolC]

Yes, enter your income under 1099-Misc.  More than likely this will be taxable.  If you are on an indefinite work assignment, establishing residency abroad and relinquishing all ties to the United States, then you may qualify for the Foreign Earned Income Exclusion.

Read this TurboTax article Filing Taxes While Overseas for more information.

[tullyncsy]

Thank you for your reply! So if I do qualify for the Foreign Earned Income Exclusion, do I enter the income in BOTH the 1099-MISC section AND the Foreign Earned Income Exclusion section?

[bine22]

yes, you enter self employment income in both sections. You will owe self employment taxes unless you pay into the social security system in a country with a totalization agreement with the US and you have a certificate of coverage.

[naahedkr]

Hello, I am in the same situation as the op. I received a 1099-MISC for online work that I did while abroad, where I live, and I am required to pay taxes on this amount in the foreign country I live in. I also pay into social security and health here. I have included the 1099-MISC in both the income section and in foreign earned income but it is still including the self-employment tax in my total due. The country I live in has a totalization agreement but I have not been asked to include a certificate of coverage to not be double taxed. Where can I include this? TIA

[DMarkM1]

You will need to use a TurboTax Desktop version and override the SE TAX on the form with a "zero".  You will not be able to e-file with an override.  You will need to print and mail your return along with the Certificate of Coverage for the totalization proof.  

[DMarkM1 · Accepted solution]

If you are in a country with a Totalization Agreement and you have coverage there, you will need to use a TurboTax Desktop version and override the SE TAX on the form with a "zero".  You will not be able to e-file with an override.  You will need to print and mail your return along with the Certificate of Coverage for the totalization proof.  

[amberleigh224]

Jumping in here wondering if anyone has additional insight for a similar situation..I am a military spouse living abroad.  I work full time for the federal government, husband is active duty...I have a side gig and receive 1099 income from a US based company (less than $6,000 for 2019)...anything I need to know or be aware of for tax filing purposes?  It would seem my only tax obligation is to the US as it's a US based company, contract income, I do not contribute to the social system and do not receive anything from it either, from host country we live in temporarily due to military orders.  Thoughts?  Thanks.  

[KarenJ2]

You will need to enter the 1099-MISC in the self-employment section of TurboTax.  You can use the Deluxe version for this if you do not have any self-employment expenses to claim to offset this income.  If you do have self-employment expenses to claim, you will need to use the Self-Employed version or the Home & Business CD/Download version of TurboTax.

If you do  not pay any foreign taxes on the income, then you only need to enter it as self-employment income.  TurboTax will calculate self employment tax on the income.  Stay safe.