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Foreign Earned Income Exclusion Self-Employment Tax

by Intuit Updated 3 months ago

How to have income flow through Form 2555 for Foreign Earned Income Exclusion and generate Self Employment tax.

After filling out the qualifying information on Screen 31.1, General Information See Entering Form 2555, Foreign Income Exclusion for the physical presence test for more information

  1. Click on Foreign Wages from the left navigation panel (this will take you to Screen 31.2, Foreign Income Exclusion (2555))
  2. Enter the Employer Name
  3. Select the Form 2555 Name or Number, from the drop down menu (this will tie Screen 31.1 and 31.2 together)
  4. Scroll down to the Foreign Allowances, Reimbursements, and Other Earned Income section
  5. Enter the "Amount", "Allocation" method, and "Period income earned" in Other foreign earned income (Ctrl+E) (code 32)
  6. Go to Screen 45.1, Self-Employment Tax (Schedule SE)
  7. Enter the amount in Net Income [A] (code 3) under the Nonfarm subsection

Also see Generating Form 2555 from Schedule C Income

Lacerte Tax

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