Question

I found the Foreign Exclusion section and added the info that I'm exempt due to living in Europe the 12-mo period. But it continues to say I owe. Why doesn't it see it?

Forum|Forum|5 years ago
March 8, 2021
1 reply
0 views

I had no problems with this last year so perhaps they've changed the software.

TurboTax Self Employed Online

linaj20201

Let's make sure it was entered correctly. The exclusion amount should show on line 8 of Schedule 1 and Form 1040. Please double-check. Do you have other type of income besides the foreign income? If you do, after applying the exclusion, It is possible you might still owe if you did not have enough tax withholding and credits to cover you other type of income. To file Form 2555 Foreign Income Exclusion, here are the steps:

In TurboTax online,

After sign into your account, select Pick up where you left off
At the right upper corner, in the search box, type in foreign income and Enter
Select Jump to foreign income
Follow prompts

After you enter the information, if you qualify for a foreign earned income exclusion, the program will prompt you to continue to the Foreign Income Exclusion section. It will generate a Form 2555. To qualify, you have to live outside the United States for at least 330 days during 12 consecutive months. For more information, please see Foreign income and exclusion and Extension.

C

ctbssamitaq2018Author

Thanks for your instructions. You said

The exclusion amount should show on line 8 of Schedule 1 and Form 1040. Please double-check.

However, I was unable to navigate to the actual forms (that get submitted to the IRS.) However, in the TurboTax program, I followed your second set of instructions and filled in all the information. Unfortunately, in the REVIEW section, it still states that I had $12,000 TAXABLE INCOME which is incorrect. Besides income from my foreign job and stimulus checks, I had only a small amount of interest ($200) from my US bank account which I did state with the 1099-INT form. Where is it pulling this extra TAXABLE INCOME from? How do I navigate to the mystery sources of income? Is there a direct route other than re-answering all the questions? Thanks so much!

L

linaj20201

In order to view the actual forms, you will have to pay first. However, you can access "Preview 1040" to only review your Form 1040 to verify info.

Here are the steps:

In TurboTax online,