gk
Level 7
‎02-23-2023 11:54 PM

Hi,

What am i  doing wrong?? I have completed the 2555 form, however the amount in 2555 ( 50K ) show as negative in 1040 line 10 and reducing the AGI.  I know this is not correct and line 10 should be blank. What mistake i have done in form 2555? Pls advise. This is my first time doing Form 2555.

 

 

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Just-Lisa-Now-
Level 15
Level 15
‎02-24-2023 08:48 AM

Dont you need to include the income on the return then use 2555 to exclude it? 

So one washes out the other.


♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪
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TaxGuyBill
Level 15
‎02-24-2023 09:57 AM

Line 10 of the 1040 (coming from Schedule 1) SHOULD show the negative number that is being excluded.

Have you also added the income to where it needs to be (line 1h if they are an employee, or Schedule C if they are self-employed)?

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gk
Level 7
‎02-24-2023 10:53 AM

Lisa,

You mean add the same amount on line 1h in 1040. Please help

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Just-Lisa-Now-
Level 15
Level 15
‎02-24-2023 10:57 AM

Yes, you need to enter the income somewhere before you can exclude it.


♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪
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gk
Level 7
‎02-24-2023 11:02 AM

Hi TaxGuy,

I did that , them Tax smart work sheet above line 16 automatically checked off "foreign earned income tax worksheet". Is that the correct way??

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