 |
|
| Browse | Ask | Answer | Search | Join/Login |
|
|
||||
|
1099-MISC with 2555
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 |
||||
|
||||
|
Kai:
I believe you entered the income TWICE on Form 1040. You enter the income on Schedule C and then debit the necessary expenses. The NET income is placed on Line 12 of Form 1040. On Line 21, your exludable foreign income is taken from Line 26 of Form 2555. Since your income is from self-employed activities, that income is inserte don Line #20 of Form 2555. Lines 19, 21 and 22 are BLANK. If they are NOT blank on your H&R Block software, THAT is why you are getting the error message. |
||||
| Question Tools | Search this Question |
Add your answer here.
Check out some similar questions!
Last year I was a full time student and also during that time I worked as a T.A and consequently have the W-2 with that income and also as an independent contractor (I have the 1099 MISC which corresponds to that income). As I understand it even though my total gross income is below the minimum...
My wife, an US citizen living abroad will be filling her tax as married filling separably using a Form 2555 for her Foreign Earned Income exclusion. She then put the total of Form 2555 line 45 in form 1040 line 21 in parentethis. Up to here it is business as usual, however this year she was awarded...
I did some small assembly work last year at home and received a 1099 misc for $1800.00. Would there be a tax advantage to forming an s-corp for future wages? Estimated wages this year will be $10,000.00
Hi, I am f1 student from india. I was working in my school in Louisiana on w2 from January 2007 to may 2007 and my gross earning was $4200 ( net pay: $3149.35, state tax withholding: $167.85, federal tax withholding: 48.85). currently I am working in my cpt for an employer in Texas who is...
I received a 1099 Misc. for money earned in assisting someone else in her clothing trunk shows in 2005. Not sure how to complete sch c for business name and if I can deduct mileage, meals, etc. that I paid for during these times. Also assist in clothes deliveries from these shows so have some...
View more questions Search
|
