How to report Foreign Earned Self-Employment Income?

[siger]

I live and work abroad as a contractor. I'm looking for the right way to declare my (foreign earned) self-employment income, in such a way that I will end up paying Self-Employment Tax, and also be able to claim the Foreign Earned Income Exclusion (reducing Income Tax).

• Entering my earnings in the "Self-Employment Income" section only is what I would do if I lived in the US. Note that I do not have any 1099 and I pick the "cash payments" flow.
  This results in paying both Self-Employment Tax & Income Tax. I cannot find a way to later characterize this income as "foreign earned" so as to claim the FEIC (while still pay the SE tax!)
• Entering my earnings in the "Foreign Earned Income" section only does not result in paying the Self-Employment Tax. 
  This isn't the desired outcome either, even if this flow allows claiming the FEIC.
• Entering my earnings in both sections ends up double counting my income (I verified by inspecting the 1040 preview).

It feels like I should be able to enter my earnings in the Self-Employment Income section, which is what triggers paying the SE tax (good), and then be able to say this income was foreign, so I can later claim the FEIC. However, the "foreign" concept only seems to exist in the "Foreign Earned Income" section, which itself doesn't have any concept of Self-Employment type of income.

This scenario is what the IRS describes here (emphasis mine):

Self-employment income: A qualifying individual may claim the foreign earned income exclusion on foreign earned self-employment income. The excluded amount will reduce your regular income tax but will not reduce your self-employment tax.

[ThomasM125 · Accepted solution]

In the foreign income section in TurboTax, you should see this screen, to which you indicate you had self-employment income. You do this after you entered your self-employment income in the business section of TurboTax:

On the next screen you enter your self-employment income. When you do this, it should not be doubled up in the program.

[siger]

Thanks. I believe I was missing the check on "A Form 1099-MISC or other self-employment income". It works now.

[claunders]

I have a similar situation, however I reside in the U.S. as opposed to living abroad.  I received an NR4 from Canada.  I wonder if I would report it as was suggested (1099) or as a cash statement.  Since this is my first time receiving an NR4, I don't know if that is Canada's equivalent of a 1099.  In any event, no tax was withheld and I am trying to figure out if I can report the income the same way as was suggested here?

[HopeS]

In the foreign income section in TurboTax, you should see this screen, to which you would indicate self-employment income. You would do this after you entered self-employment income in the business section of TurboTax.

@claunders 

[astral101]

I have the same issue. Where is the business section TurboTax so I can enter the self employment income?

[DoninGA]

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@astral101 wrote:

I have the same issue. Where is the business section TurboTax so I can enter the self employment income?

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To enter Foreign Earned Income -

Click on Federal Taxes (Personal using Home and Business)
Click on Wages and Income (Personal Income using Home and Business)
Click on I'll choose what I work on (if shown)
Scroll down to Less Common Income
On Foreign Earned Income and Exclusion, click on the start or update button

Or enter foreign income in the Search box located in the upper right of the program screen. Click on Jump to foreign income