foreign earned income not showing 0

[2018problems]

TT 2019 Premuer. On Fed  Step-by-step screen,  under Wages&..., Less Common, Foreign Earned Income shows $0. However with curser over the $0 it indicates FEI Exclusion of -xxxx.  Does it show $0 because it cannot show a negative? Is the exclusion applied?

[SusanY1]

Yes, if you are seeing $0 on the summary screen because that screen can't/won't display a negative number.  Take a look at your Form 1040 to be sure - you should see the negative income on Line 7a.  If you have any other adjustments to income they may also show here but this should give you the reassurance that it is applied.  Here is how to view your Form 1040 in TurboTax now:

1. Log in to your tax return at TurboTax.com.
2. Click on Tax Tools on the left side of the screen (you may need to click on Continue in the center first).
3. Click on Tools.
4. In the box that pops up in the center, click on View Tax Summary.
5. Once your Tax Summary has displayed click on Preview My 1040 in the menu on the left.

[2018problems]

TT should allow a negative number or other indicator to show foreign income exclusion or orher adjustments have been applied

[KarenJ2]

On the summary screen that you indicated with the $0 next to Foreign Earned Income , the number is the foreign earned income that was input in the foreign earned income exclusion section of TurboTax (does not include income that you entered elsewhere , for example it does not include your W-2).

If you did not enter any foreign income in the foreign earned income exclusion section because you entered it was included in a Schedule C or K-1 or W-2), then it would show zero in the summary screen.  To check if it calculated the exclusion, go to Preview my tax return and it will be on line 7.

1. Log in to your tax return at TurboTax.com.
2. Click on Tax Tools on the left side of the screen (you may need to click on Continue in the center first).
3. Click on Tools.
4. In the box that pops up in the center, click on View Tax Summary.
5. Once your Tax Summary has displayed click on Preview My 1040 in the menu on the left.

[2018problems]

you assume I am using TT online. I am using Premier on a desktop. There is no TaxTools to click. There is a Tools and when clicked allows me to view taxes but that is just a summary.

An earlier response that indicated that if te value is negative - which it is since I am excluding all - it would show zero - which I assumed. 

Not such an EXPERT response!

[zamrin]

I followed instruction and get negative value for FEI on my 1040 which answers say is right doesn't make sense.  My total income is then negative say -40000 (other small income from US from dividends, interest, etc.).  But If I had US income of 35000, would my total then by 5000?  It seems somewhere I should be able to enter foreign income of say 45000, get the exclusion, so that I would just pay tax on my American Income.  My foreign income is entered on 2555.  Is there somewehre else it should go?  I have no W2's,etc. for foreign income.

[BrittanyDenver]

I have previewed my Form 1040 and the FEIE is checked, but there is not deduction listed anywhere. When I entered my FEIE and it says I qualify, my tax due went up instead of going down. How do I fix this? 

[artman99]

I've got the same problem and have found no solution.

[2018problems]

was the income self employment? if yes, then SE tax gets added

[artman99]

I generated tax returns both with foreign income and without foreign income and indeed this is a huge calculation error in TurboTax (should be covered by their 100% correct calculations guarantee).

What happens is that my foreign income gets added to by wages under 1, then get negatively added under 8 (Other income), resulting in the same 15 (Taxable income). So far so good. But then, erroneously, 16 (Tax) shows an increase as if the full sum of my foreign income was taxable. If my taxable income is the same for both generated tax reports, how come the calculated tax is different?

This is not a small calculation error, but increases my calculated tax burden by $20.000.

[DaveF1006]

It depends. At this point without looking at your return, we cannot comment on what might be causing the calculation error. At this point, You might wish to contact Turbo Tax Tech Support at 1-800-446-8848 for further assistance as they can look at your screen and return to pinpoint any issues you are experiencing..

[BrittanyDenver]

UPDATE: I spent two hours on the phone with Turbo Tax support. They share your screen and look over your documents. My tech support "thinks" it is because my FEIE has less deductions than the other deductions I qualify for if I am in the USA. He is recommending not to take the FEIE.

[ReneeM7122]

Correct, you may not need or want to take the FEIE.  The FEIE is voluntary. Here is a link to the IRS with more information.  

U.S. citizens and resident aliens must report the income they earn outside of the U.S. annually.  The Foreign Earned Income Exclusion (FEIE) can enable you to exclude the income from your US tax return.    In 2020, this amount is expected to be $107,600, and it’s adjusted annually for inflation. 

Who should use the FEIE?

To use the FEIE, you must be:

• Physically present in another country for 330 days of the year, or
• A “bona fide resident” of the country

TurboTax will figure out if you’re eligible for this exclusion or you can use this tool from the IRS.

@BrittanyDenver