DIY Products

DIY Products

Whether you’re an experienced do-it-yourselfer or doing your own taxes for the first time, this is your place to learn and share. Here you’ll find information and resources for using H&R Block’s online and software DIY solutions. You’ll also find links to more information to assist you on your DIY journey.

Reply
Pioneer
Posts: 2
Registered: ‎04-19-2014

Foreign Earned Income Exclusion

        I am receiving this error message and I don't know how to fix the form:  "Excluded wages in the Foreign Earned Income Exclusion (Form 2555) topic cannot be more than wages reported in the W-2 or Foreign Wages not on a W-2 topics."  Any help would be appreciated.

 

    Thank you!
Client Support
Posts: 960
Registered: ‎02-17-2014

Re: Foreign Earned Income Exclusion

We will need more information from you to properly assist you. Please contact our digital department at 1-800-472-5625 option 2. A specialist will be able to assist you with this issue.

 

Thank you for joining the Community, have a nice day!

-Misti

Pioneer
Posts: 2
Registered: ‎08-29-2014

Re: Foreign Earned Income Exclusion

Has this problem been resolved? I'm having the exact same issue since early part of the year. I deferred filing my taxes, but the issue is still there. Can someone please post steps to counter this problem?

 

Thanks,

Azhar

Pioneer
Posts: 2
Registered: ‎08-29-2014

Re: Foreign Earned Income Exclusion

OK, this is how I fixed the error on my return:

1. Removed my foreign earned income from line 19 of Form 2555.

2. Entered the same amount on line 23 of Form 2555 with a description of "Salary"

 

This fixed the problem and allowed me to e-file successfully.

Pioneer
Posts: 2
Registered: ‎03-18-2015

Re: Foreign Earned Income Exclusion

I am also having the same problem. I'm getting the error message. I've deleted my info and restarted from the beginning of the foreign income section; still nothing works. 

 

If I enter the income exclusion amount, it gives me that error. If I delete claiming any income, it says I can not e-file my return because it is "blank".

 

PLEASE HELP! Super frustrated. Didn't have this issue last year!

ice
Pioneer
Posts: 1
Registered: ‎03-21-2015

Re: Foreign Earned Income Exclusion

[ Edited ]

I had the same error and no way to fix. I gived up... It could be a bug...

Trusted Pioneer
Posts: 6
Registered: ‎03-18-2015

Re: Foreign Earned Income Exclusion

Yes I had this error & this is the only thing that resolves the error. However this means that the previous returns my wages are reported on like 19. Where they transfer over to 1040 wages. Recording the wages on lline 23 instead, means it does not carry over to line 7 of the W2. H&R Block should fix this error..

Trusted Pioneer
Posts: 6
Registered: ‎03-18-2015

Re: Foreign Earned Income Exclusion

The true solution to this issue is NOT to move your wages from line 19 (Wages) to line 23 (Other) of the Form 2555. The answer is simple but not initially clear. On the EMPLOYMENT INCOME section, we have to fill in a form called "Foreign Compensation not shown on a W2".

Once your wages are there then it checks with the wages on line 19 & the error message you see (Excluded wages in the Foreign Earned Income Exclusion (Form 2555) topic cannot be more than wages reported in the W-2 or Foreign Wages not on a W-2 topics.) will go away.

In addition it will now complete line 7 & the rest of the 1040 correctly. Don't forget to complete 1116 if it applies to you & also to convert your wages from foreign currency to USD prior to entering.

Pioneer
Posts: 1
Registered: ‎04-28-2015

Re: Foreign Earned Income Exclusion

This approach got me close, but then I owed tax.  I'm self-employed and already pay in the country of my tax home, so that didn't make sense.  I contacted H&R Block Support and they said not to complete the form "Foreign Compensation not shown on a W2".  Instead they said to edit my 2555 form and enter my income in the Professional Services field.  You can find that in the page immediately following the Wages and Salaries page.  

 

Hope that helps someone avoid the 2 hours it took me chasing this issue!  If anyone from H&R Block reads this, really, the 2555 should be automatically populated with data based on the information that we already enter in the income section.   Same could be said for the 1116 regarding interest.  Those features would help expats significantly and give you a competitive advantage over lots of other software packages out there that all seem to ignore the expat market.

Pioneer
Posts: 1
Registered: ‎03-20-2017

Re: Foreign Earned Income Exclusion

Hi,

 

I am having this issue AGAIN after on my 2016 return just like I had it last year... only THIS time, the solution above --  "I contacted H&R Block Support and they said not to complete the form "Foreign Compensation not shown on a W2".  Instead they said to edit my 2555 form and enter my income in the Professional Services field.  You can find that in the page immediately following the Wages and Salaries page" -- did NOT solve the problem.

 

Basically, I am dead in the water and stuck on the page Final Accuracy Check with the same old message: "The excluded wages in the Foreign Earned Income Exclusion (Form 2555) topic can't be more than wages in the W-2 or Foreign Wages not on a W-2 topics. Review what you entered and make sure it's accurate".

 

I have NOT added/completed a "W-2 or Foreign Wages not on a W-2" item on the return, as I have nothing to enter in this area.

 

I HAVE completed the "Foreign Earned Income (Form 2555)" section where I've entered my income as an independent contractor while living overseas. I've tried this figure (converted to USD) as Line 19 ("Total Wages...") with zero luck, and also tried entering it as Line 20a ("In a business or profession") on the subsequent page, also with no success. I've even tried putting it in BOTH of these areas, and still the Accuracy Check fails and the "Issue" will not go away.

 

Last year, the fix mentioned in the above posting by "DigitalThor" worked. This year, it has no effect. And if I enter a  "Foreign Compensation not shown on a W2" section, then not only am I reporting inaccurately to the IRS (I earned no "Wages" -- my income was from self-employment, and this is not the proper location to enter it), but I end up owing money.

 

Can someone from H&R Block please address this or tell me whether it's a BUG or whether I'm filing something incorrectly?

 

Thanks!

Derek