How can lines 26 and 45 of Form 2555 (foreign earned income) be corrected? The e-file has been rejected even after following instructions.

[gaertnerk]

The first round of e-filing was rejected. After following Turbotax instructions it claims, it was corrected.

As reason for rejection it states that on Form 2555 Lines 26 needed to be negative (and is based on Line 45). Using the software, I don't see an option where I can influence this.

[KarenJ · Accepted solution]

On the Form 2555 line 26 and line 45 (your foreign earned income exclusion amount) are both positive numbers.

Line 45 says to enter the line 45 amount in parentheses on Schedule 1 Line 21.  Then on Schedule1, you subtract your amount from your additional income to arrive at the amount reported on Schedule 1, line 22.  See screenshot below.

I am not sure how you can influence this in the online version.  However, you will be able to determine whether your foreign earned income decreased your income on your return.

[Edit 04.16.19 | 10:12 am]

[gaertnerk]

Thank you for the answer - this helps some.
Based on your answer and additional research in the instructions to the respective forms, it seems that there is a mismatch created by TurboTax. It filled out Form 2555 Line 45 with no parentheses.

I am also not quite sure, yet, how TurboTax comes up with the numbers in Schedule 1, line 21 - I'll still have to research what else is added/subtracted. Do you happen to have a screen shot of this as well?

However, I would have expected TurboTax to be capable of doing all this, if it offers to enter foreign income. Unless there is a trick to it that I haven't discovered, this is disappointing. Especially since I only found out that it does not work after paying for it.

[KarenJ]

Form 2555 is supposed to have positive numbers for Line 45 and Line 26.  I apologize if I did not make this clear.  I edited my answer and added a pdf example copy of everything that is included in Line 21 Schedule 1.  I strongly suggest that next year you use the cd/Download version of TurboTax instead of the online version.  With the cd/Download version, you can see all your forms and worksheets while you prepare your returns.  You cannot do this with the online versions.  All the cd/Download versions are the same, the only difference between the versions is the amount of assistance they provide for different topics.

[gaertnerk]

Thank you very much for your answers.
Yes, it was clear to have positive numbers for Line 45 and Line 26. Thank you for your edit as well and your suggestion about the download version. I wasn't aware of the difference and may follow your advice for the next round.

[myllidixon]

I am having the same problem have been through the online application two separate times. How do you fix? Why did I get TurbTax if I need to research a form 2555 in order to file :(