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Foreign consulting income

I had a job in 2020, but received some foreign consulting income. Can one of the turbotax software packages handle or i need to go to a professional accountant. The consulting gig did not pay enough to make it worthwhile to go to a professional. Tax was deducted at source. 

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2 Replies
DanaB27
Expert Alumni

Foreign consulting income

Yes, you would enter it as self-employment income and if you lived abroad then you might qualify for the Foreign Earned Income Exclusion. You can use TurboTax Online Self-employed or TurboTax Desktop Home & Business. Please see Compare TurboTax Products for more details.

 

 

To enter self-employment income: 

  1. Login to your TurboTax Account 
  2. Click on "Search" on the top right and type “self-employed”
  3. Click on “Jump to self-employed”
  4. Continue through the questions
  5. "How much of your  work took place within the United States?" screen answer "None of this work took place within the United States"

 

 

 

To enter the information in the foreign section:

  1. Click on "Search" on the top right and type “foreign income”
  2. Click on “Jump to foreign income”
  3. Answer "Yes" to "Did You Make Any Money Outside the United States?"
  4. Choose “A Form 1099-MISC or other self-employment income” and click “Continue”.
  5. On the "Enter Your Gross Profit From Foreign Self-Employment" screen enter your gross profit
  6. TurboTax will walk you through the questions.

 

Please see What is the self-employment tax? and What self-employed expenses can I deduct? for additional information.

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Foreign consulting income

Thank you! Very helpful and kind of you to explain in details. I'll follow your suggestion.

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