Before you start:
- See Generating Form 2555 - Foreign Income Exclusion for instructions on entering Form 2555 General Info.
Follow these steps to link Schedule C income to Form 2555:
- Go to the Input Return tab.
- On the left-side menu, select Income.
- Click on Business Income (Sch C).
- Complete all Schedule C information as you normally would.
- See Generating Individual Schedule C for assistance with this step.
- On the left-side menu, select Foreign Income Information.
- Scroll down to the Foreign Income Information section.
- Select the appropriate Form 2555 name or number (Click on arrow to select from list).
- If no Form 2555 is listed here, please follow the steps in Generating Form 2555 - Foreign Income Exclusion.
- Enter the Percentage foreign if not 100%, if applicable. The program limits net income and expenses by this percentage to carry to Form 2555.
Note: Do not make entries in Form 1116 name or number, Name of foreign country, or Category of Income. When the Schedule C is linked to Form 2555, additionally linking it to Form 1116 may cause income from the activity to be overstated.