I am self-employed working in South Korea and covered by the South Korea National Pension. So I am exempt from the USA Self-Employment Tax by Social Security Agreements.
The 1040 instructions are very clear on what to do. The instructions say:
If your self-employment income is exempt from SE tax, you should get a statement from the appropriate agency of the foreign country verifying that your self-employment income is subject to social security coverage in that country. Don’t complete Schedule SE. Instead, attach a copy of the statement to Form 1040 or Form 1040-SR and enter "Exempt, see attached statement" on Schedule 2 (Form 1040 or 1040-SR), line 4.
I have the “Certificate of Coverage” from the Korean Tax Office. But in Turbotax, when I go to 1040 Schedule 2, line 4, I cannot enter “Exempt, see attached statement”
I try to override the value there, and I get the error “Type in a number.” How can I follow the 1040 instructions and enter “Exempt, see attached statement” when Turbotax is looking for a number?
Thanks
You will need to print your return and manually write in “Exempt, see attached statement” and then mail your return.
You will need to mail your return anyway to attach your Certificate of Coverage.