FEIE Foreign Earned Income Excclusion, TT doubles W-2 income.

[j-zee]

I've entered W-2 income as I would do if I was not going to claim a FEIE. Then I did the FEIE interview in TurboTax and at the end it shows "Foreign wages, salaries, tips" that is roughly double the amount of the W-2. When I view the form 2555 (Foreign Earned Income) I see where the doubling occurs, but don't understand how to correct it.

Under Foreign Source Wages and Salaries Smart Worksheet:

A. Wages marked as foreign on W-2 Wkshts and entered on Wages and Salaries Wkst: ______ (empty field)

B. Wages marked as foreign on W-2 ___ $100,000

C. Adjustment ____-$2000___

19. Total wages, salaries and bonuses $98,000

20. Allowable share on income from personal services perfromed:

    a. In a business or profession $100,000

24. Add lines 19 through 21d, and line 23   $198,000

So the amount gets entered twice somehow. I'm wondering where I might be entering the amount of the W-2 that I should not be entering it? Also note there is one week out of the year where work on the W-2 was actually done while physically in the United States (C. $2000).

[rjs]

If you entered the foreign income on a W-2 you should not enter it anywhere else. This is just a guess, because I can't see your screen or your tax return. If the amount appears on Form 2555 line 20a you may have entered it as business or self-employment income. In the interview for foreign income there is a screen that asks what form the foreign income was reported on. If you check the box for "A Form 1099-MISC or other self-employment income," then after that you get a screen that says "Enter Your Gross Profit From Foreign Self-Employment." On that screen there is a box for "Foreign Gross Profit." If you enter an amount in that box it goes to Form 2555 line 20a. That might be where you entered the income again. If you entered it on a W-2 you should not enter it again as foreign gross profit. It cannot be both wages and business income.

[j-zee]

Thank you for your help RJS. I see in the Foreign Income step-by-step the first question is "What Form(s) Was Foreign Income Reported On?"There is an option for "A regular Form w-2 from your employer" which is why I thought I should enter it here. I believe you are suggesting I uncheck that box?

Although in reviewing the W-2 entry, I see there was a question under "Let's check for uncommon situations" in which I checked a box "Worked outside the U.S." but also says "Foreign earned income on your W-2 will be covered later". So it's rather confusing. The only place it seems to be covered later is in the FEIE section.

On the "Your 2023 Income Summary" screen, FEIE shows zero.

[j-zee]

And i see in further review, you assumption was correct. I had entered the W-2 amount on the screen that says "Enter Your Gross Profit from Foreign Self-Employment". So after removing that, everything seems to add up correctly. Thanks again!