Yes,you should enter your deductions on the page "Deductions Related to Your Foreign Earned Income Exclusion".
TurboTax will allocate your expenses as follows: (Form IRS page 25,, Example 2)
You are a US citizen have a tax home in home in Spain, and meet the physical presence test. You are self-employed and personal services produce the business income. Your gross income was $121,842, business expenses were $67,695, and net income (profit) was $54,147. You choose the foreign earned income exclusion and exclude $105,900 of your gross income. Since your excluded income is 86.92% of your total income, 86.92% of your business expenses are not deductible. Report your total income and expenses on Schedule C (Form 1040 or 1040-SR). On Form 2555, you will show the following
- : Line 20a, $121,842, gross income
- Lines 42 and 43, $105,900, foreign earned income exclusion, and • Line 44, $58,840 (86.92% (0.8692) × $67,695), business expenses attributable to the exclusion.
US Guide for US Citizens and Resident Aliens Abroad
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