Level 6

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2555

Forum|Forum|3 years ago
February 24, 2023
2 replies
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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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Best answer by TaxGuyBill

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)?

Intuit Community Champion

Intuit Community Champion

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

So one washes out the other.

♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪

gk77_2Author

Level 6

Lisa,

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

Intuit Community Champion

Intuit Community Champion

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

♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪

TaxGuyBillAnswer

Level 15

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)?

gk77_2Author

Level 6

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??