Kal2011
Jan 2, 2012, 01:55 AM
Hi,
I am a US Citizen living abroad. I qualify for the "Foreign Earned Income and housing deduction" I qualify under the "Physical Presence Test" as I've been overseas since 07/22/2010.
1- I am self employed and work with different US based business. So I get 1099 from each at the end of the year. I've entered my income on line 12 of 1040 (After all business expenses and deductions - I've chose the standard $5800 deduction) because I still need to pay Self Employment taxes on my income, and I've entered my "Foreign Earned Income" on line 21 of 1040. Then I completed form 2555 entering all myself employment income (before expenses and deductions) to exclude. My total self employment income is less than $92,900, so I am not claiming any Foreign Housing deduction.
However, the HRBlock software I am using keeps telling me I have an error, and the error is:
"Part IV entries on lines 19, 21, and 22 less line 25 exceeds wages for the taxpayer. Verify all taxable employee income on Form 2555 is included on W-2 and Form 2555 entries are not duplicated."
I believe this is due to my income begin 1099-MISC, and not W-2, and so not entered on line 7 of 1040. But how can this be fixed? Can I enter my income on line 7 instead, and if so, how would I pay myself Employment taxes?
2- I didn't file for "Foreign Earned Income" in 2010 even though I just noticed I qualify for that since I've been overseas since 7/22/2010, so I think I qualify for that, and can exclude my earned income from 7/22/2010 to 12/31/2010, correct? How can I fix this to get some money back? I didn't ask for an extension in 2010 either, so I filed before April 15 2011.
Thank you for your help :)
Kal
I am a US Citizen living abroad. I qualify for the "Foreign Earned Income and housing deduction" I qualify under the "Physical Presence Test" as I've been overseas since 07/22/2010.
1- I am self employed and work with different US based business. So I get 1099 from each at the end of the year. I've entered my income on line 12 of 1040 (After all business expenses and deductions - I've chose the standard $5800 deduction) because I still need to pay Self Employment taxes on my income, and I've entered my "Foreign Earned Income" on line 21 of 1040. Then I completed form 2555 entering all myself employment income (before expenses and deductions) to exclude. My total self employment income is less than $92,900, so I am not claiming any Foreign Housing deduction.
However, the HRBlock software I am using keeps telling me I have an error, and the error is:
"Part IV entries on lines 19, 21, and 22 less line 25 exceeds wages for the taxpayer. Verify all taxable employee income on Form 2555 is included on W-2 and Form 2555 entries are not duplicated."
I believe this is due to my income begin 1099-MISC, and not W-2, and so not entered on line 7 of 1040. But how can this be fixed? Can I enter my income on line 7 instead, and if so, how would I pay myself Employment taxes?
2- I didn't file for "Foreign Earned Income" in 2010 even though I just noticed I qualify for that since I've been overseas since 7/22/2010, so I think I qualify for that, and can exclude my earned income from 7/22/2010 to 12/31/2010, correct? How can I fix this to get some money back? I didn't ask for an extension in 2010 either, so I filed before April 15 2011.
Thank you for your help :)
Kal