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How do I report my clients income as foreign earned income when they get a 1099 misc form for their income

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Level 1
last updated ‎March 05, 2020 5:55 AM

My client is an overseas missionary.  Their income is reported on a 1099-MISC form rather than a W2.  When a client gets a W2 there is a box to check in Proseries indicating it is foreign earned income.  There is no such box that I can find when reporting income on a 1099.

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Level 15
last updated ‎March 05, 2020 5:55 AM

§911(d)(6) dictates that adjustments for deductions allocable or chargeable to the exclusion be made on Line 44.  Gross income is reportable on Line 20a.

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Level 15
last updated ‎March 05, 2020 5:55 AM

Instead of relying on a checkbox to flow the details to F.2555, you will need to make the input for the income along with the sourcing code on 2555 Inc Wks-T instead.  You'll complete the rest of F.2555 as you usually do with others.

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Still an AllStar
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Level 1
last updated ‎March 05, 2020 5:55 AM

Not sure I follow.  They have a schedule C with detailed expense deductions.  Where do I put that on form 2555?

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Highlighted
Level 15
last updated ‎March 05, 2020 5:55 AM

§911(d)(6) dictates that adjustments for deductions allocable or chargeable to the exclusion be made on Line 44.  Gross income is reportable on Line 20a.

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Still an AllStar

View solution in original post

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