I am a self-employed Expat living in Canada. Canada & USA have a tax treaty so I do not need to complete Schedule SE. Turbotax automatically generates & populates the form & applies taxes that are not covered under F2555 Foreign Earned Income Exclusion. IRS instructions recommend not filing Schd SE & adding a note to Line 4 on Schd 2 referencing the tax treaty & exemption to SE taxes. The Windows software, however, will not let me delete the schedule. Any thoughts or suggestions?
TurboTax allows you to remove self-employment tax from your tax return.
Step 1: Remove Schedule SE
This removes self-employment tax and the deductible part of self-employment tax from Form 1040. However you still need to adjust Form 2555 to remove the S/E tax adjustment.
Step 2: Remove S/E adjustment from Form 2555
Attach a copy of the statement to Form 1040 or Form 1040-SR from the appropriate agency
of the foreign country verifying that your self-employment income is subject to social security coverage in that country. Enter “Exempt, see attached statement” on Schedule 2 (Form 1040), line 4.
Thank you for the excellent response to my question. I have an added twist to this matter -- I prefer using the Forms format for data entry and I am also trying to amend my 2019 tax return. I am now having trouble adding a statement to line 4 of Schedule 2. I cannot override the info fields to add a statement about SE exemption.
You may have to hand write it. You will not able to e-file. The IRS says write “Exempt, see attached statement” on Schedule 2 (Form 1040), line 4. There's no way to override and put any explanation on that line.