Form 2555 & Foreign 1099 type income

[mnfriedman1]

I live abroad and qualify for the Foreign Earned Income Exclusion (Form 2555). I see how to enter my salary informaiton but not how to enter other, 1099 type fees received. These fees were also earned abroad and were paid by other than my salary employer.  

Ordinarily this fee income would be reported on Schedule1, line 8z but since it is also foreign earned income it is eligible for exclusion. But I do not see how this is accomplished. There are no expenses to be applied against the fees.

Any help would be appreciated.

Thanks.

[ThomasM125]

You could report it as wage income if you are sure it is earned income. You can do this by entering it in the Foreign Earned Income and Exclusion section, under Less Common Income. Indicate that the income is reported on A statement from my foreign employer. You will see a screen that says Enter Your Foreign Earned Wages, on which you will enter the fee income you describe. The income entered in this way will appear on line 1 of your form 1040, and be treated as earned income.

Unless you report it as self-employment income, which is subject to self-employment tax, I don't know any other way to report it and have it be treated as earned income.

[mnfriedman1]

Thanks. I'm already reporting salary income and identifying my employer. I do not see how to enter information for two different employers. I could add the fees to my salary income, which would get to the right result but would not accurately report either amount.

While the fee income would be self-employment income in the US, it is covered by a totalization agreement so is not subject to self-employment tax.

Thanks again.

[RobertB4444 · Accepted solution]

@mnfriedman1  When you go to the 'Foreign Earned Income and Exclusion' section under 'Less Common Income' the very first choice that you are offered is "What Form(s) Was Foreign Income Reported On?" and then below that are 4 choices.  The second is 'Form 1099 or other self-employment income' and you will select that (you can select more than one choice).  Then you will get the screen to enter the self-employment income you earned subject to the foreign earned income exclusion.

[mnfriedman1]

Thank you, that's it.