I used form 2555 for wages and self-employed income earned living out of US. Turbotax includes Schedule SE. my return is showing my SE tax as due when it should be zero.

[Devin]

The self-employment tax applies to all self-employed income worldwide. The foreign earned income exclusion (form 2555) only applies to income tax, not self-employment tax.
The only option for exempting foreign self-employment from the SE tax is if your self-employment activity is covered under the social security system of another country and that country has a totalization agreement with the US. You can read more about totalization agreements in the last section of this IRS page:

https://www.irs.gov/individuals/international-taxpayers/self-employment-tax-for-businesses-abroad

[sherrysoro]

Thank you very much.  So, Turbotax is not usable in a case like this.  🙂

[Devin]

Not sure what you mean. If you're covered by a totalization agreement, you can adjust the amount of SE earnings subject to SE tax. Just go to the "self employment tax" topic and indicate you need to make adjustments. Then you can enter a negative adjustment for the amount of SE net earnings.

[jorgeorpinel]

Actually there's another way to avoid self-employment taxes when you live abroad, and that is with an S corp. See https://onlinetaxman.com/when-to-switch-from-llc-to-s-corp/