- Mark as New
- Bookmark
- Subscribe
- Permalink
- Report Inappropriate Content
A Self-employed Taxpayer qualifies for foreign earned income exclusions. However, a % of the schedule C income is sourced to USA based on the days he performed services in the USA. Unlike for wages, ITO software has drop down box that you can choose " allocate the income between US and Foreign" , schedule C doesn't have that option . Schedule C input sheet just allows you to enter the % of foreign income. I override the amount of "income earned in US on business o form2555 part II line 14". then I received a critical diagnostic which prevents me from efiling the tax return. It looks like that override doesn't affect the any numbers on the tax return. However, if I remove the override, the tax return doesn't reflect the correct information. I called the agents with ITO. They couldn't find a solution. Does any one have experiences on this issue?
- Mark as New
- Bookmark
- Subscribe
- Permalink
- Report Inappropriate Content
@Taxfun you should try to post under ProConnect Tax Online when it is program specific. Maybe @itonewbie can point you in the right direction.
Answers are easy. Questions are hard!
- Mark as New
- Bookmark
- Subscribe
- Permalink
- Report Inappropriate Content
Thank you for letting me know. @itonewbie Would you show me how? thanks!
- Mark as New
- Bookmark
- Subscribe
- Permalink
- Report Inappropriate Content
I figured out! thanks!
- Mark as New
- Bookmark
- Subscribe
- Permalink
- Report Inappropriate Content
@TaxfunGlad you had it figured out. You may like to check again whether that's a Sch C activity. The entity classification rules for foreign entity are very different from those for domestic ones. More often than not, foreign entities are not disregarded. And that would mean a very different tax regime and additional filing requirements in relation to the foreign entity. Expats are generally not familiar with these rules and would simply tell you they are self-employed. Getting these wrong can have very serious repercussions.
Still an AllStar