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How can lines 26 and 45 of Form 2555 (foreign earned income) be corrected? The e-file has been rejected even after following instructions.

Forum|Forum|7 years ago
June 1, 2019
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The first round of e-filing was rejected. After following Turbotax instructions it claims, it was corrected.

As reason for rejection it states that on Form 2555 Lines 26 needed to be negative (and is based on Line 45). Using the software, I don't see an option where I can influence this.

TurboTax Premier Online

Best answer by KarenJ2

On the Form 2555 line 26 and line 45 (your foreign earned income exclusion amount) are both positive numbers.

Line 45 says to enter the line 45 amount in parentheses on Schedule 1 Line 21. Then on Schedule1, you subtract your amount from your additional income to arrive at the amount reported on Schedule 1, line 22. See screenshot below.

I am not sure how you can influence this in the online version. However, you will be able to determine whether your foreign earned income decreased your income on your return.

[Edit 04.16.19 | 10:12 am]

K

KarenJ2Answer

On the Form 2555 line 26 and line 45 (your foreign earned income exclusion amount) are both positive numbers.

Line 45 says to enter the line 45 amount in parentheses on Schedule 1 Line 21. Then on Schedule1, you subtract your amount from your additional income to arrive at the amount reported on Schedule 1, line 22. See screenshot below.

I am not sure how you can influence this in the online version. However, you will be able to determine whether your foreign earned income decreased your income on your return.

[Edit 04.16.19 | 10:12 am]

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G

gaertnerkAuthor

Thank you for the answer - this helps some.
Based on your answer and additional research in the instructions to the respective forms, it seems that there is a mismatch created by TurboTax. It filled out Form 2555 Line 45 with no parentheses.

I am also not quite sure, yet, how TurboTax comes up with the numbers in Schedule 1, line 21 - I'll still have to research what else is added/subtracted. Do you happen to have a screen shot of this as well?

However, I would have expected TurboTax to be capable of doing all this, if it offers to enter foreign income. Unless there is a trick to it that I haven't discovered, this is disappointing. Especially since I only found out that it does not work after paying for it.