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Foreign earned income exclusion

Level 3

A self-employed client operates as a Schedule C in China. The gross income flows to Form 2555 but I want the net to flow to Form 2555. How do I enter that? Wages are simple but Schedule C is not. Happy to pay Self employment tax but not income tax.


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3 Comments 3
Level 9

Hopefully someone with Lacerte experience will come along to help you.  ProSeries lets me enter the net Schedule C income directly on Line 20a of the 2555 and then reduces the amount available for exclusion by 1/2 of SE and the SE health insurance deduction (and if applicable, the prorated amount of SEP, IRA,etc. deductions).  Is that the line you are questioning?

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Level 1

I too hope someone can answer this... not much of a chance 2 years later

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Level 15

You mark the Schedule C as foreign.

It should flow.

1/2 SE tax and SE health insurance are included as deductions/expenses, too.