Form 2555 foreign earned income

[allisons]

dilemma - trying to Prepare tax return for client who lived in Japan for all of 2022 working for us based companies. trying to use foreign income exclusion 

1. if I do not enter the W-2 on form 2555 income then no exlusion

2. if I do not enter wages on traditional w-2 page then error messages saying no income return must be filed on paper

3. if I enter on both then program doubles income

HELP I am pulling my hair out

[gskidtax]

Try deleting the W-2 input page. On W-2 input screen, right click on the screen, then click on remove page... 

Then go back to 2555 and enter W-2 earnings...

[allisons]

Please refer to #2 - if the wages are not entered on the W-2 page then I get 7 critical diagnostics and it says file return on paper with client in Japan

[gskidtax]

Did you delete the input screen for the W-2? What errors are you seeing?

[rbynaker]

There's a "business rule" from the IRS that says you can't efile if you don't have a laundry list of things, one of which is non-excluded income.  Isn't there a Wells Fargo account somewhere that earned $0.17 of interest?  Round up to $1 and put it on Sch B.  Or what about that $1 they won on a scratch-off lottery ticket, that's income.

Let us know if you're not good to go with $1 of other income somewhere.

[allisons]

yes interest and dividend income there and not excluded

[rbynaker]

Just realized this is PTO and not ProSeries.  Is there a checkbox somewhere on the 2555 input that indicates the wages were entered elsewhere?

@itonewbie hasn't been around in a while but let's see if the bat-signal works.

[allisons]

The IRS requires the total withholding amount on form 1040 to be less than the total of specific categories of income. Please search 1040 withholding in proconnect tax search bar