I have a client with income from Australia as self-employer. While I am putting all information on 1116 form and 2555 form it still shows that he needs to pay self-employed tax and he is not supposed because US has the agreement with Australia. I want to know please what the steps are to report that income? So, you first create schedule C as usual? Is it a way for schedule C to flow on those foreign forms? Am I missing a step, or do I need to do any adjustment manually?