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February 16, 2025
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How to report foreign equity investment income with 1099-B. I am not able to find such option.

  • February 16, 2025
  • 1 reply
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After adding all the details about foreign equity earnings, turbo tax is asking to upload form 1099-B. I don't get this form from my broker. Any idea how to skip it?
    Best answer by DaveF1006

    As per my knowledge, I am requried to pay income tax on my worldwide income in USA as I am US tax resident and I sold some Indian equity through a broker in India. So in India, I'll get the TDS back(if deducted) and I need to declare the same in my US income and pay taxes here.

    Yes I am using online version of turbo tax and it is asking me to upload form 1099-B to file the return if I declare my foreign income. 


    If you don't have a 1099B, you are unable to upload. you will need to enter the information manually. Here is how to report.

    1. Once you are in your tax return, click on the “Federal Taxes” tab ("Personal" tab in TurboTax Home & Business)
    2. Next click on “Wages & Income” ("Personal Income" in TurboTax Home & Business)
    3. Next click on “I’ll choose what I work on” (jump to full list)
    4. Scroll down the screen until to come to the section “Investment Income”
    5. Choose “Stocks, Mutual Funds, Bonds, Other” and select “start’ or “update” is you have already worked on this section.
    6. The first screen will ask if you sold any investments during the current tax year. Answer “yes” to this question)
    7. Since you did not receive a 1099-B, answer “no” to the 1099-B question
    8. Choose type of investment you sold - Here you will pick the closest classification that matches the entries in the drop-down.
    9. Finish the section reporting the details of your sale. 

    If reporting in Turbo Tax online, you will need to report in this manner.

     

    1. Once you begin entering information in this section, it will ask you to import your information. Say that you will enter this a different way.
    2. Now instead of selecting stocks and bonds, select other.
    3. Next screen enter the broker information.
    4. Next you can indicate this is a stock sale and then proceed through the rest of the interview. You will need to report this in this manner since you haven't received a 1099B.

    [Edited 02/17/25|2:54 pm PST]

    1 reply

    Employee
    February 17, 2025

    @akhilsuri194  Namaste Akhil ji

    (a)  which country are your investments in ( Indian stocks or what?)?

    (b)  what type of  income -- sale  ( capital or ordinary ), interest, dividend  or what ?

    (c) Are you having TDS on this income  or is  this unrealized  income/gain ?

     

    Generally , foreign sourced incomes  are treated just like  domestic except that you do not have the  1099s involved/issued.  So you have to use dummy ones ( i.e. you recognize the income as if you had a 1099).

    If any taxes were  paid  ( finalized  is better but TDS can work temporarily  with amendment required), this may be eligible for  foreign tax credit ( absent any constraints  by the tax treaty between  US and that foreign source country).

    Your own Tax status  ( US person  or NRA  )  also plays into this. 

     

    Please answer my questions  and I will circle back.  You can also PM me

    February 17, 2025

    Hi,
    Thank you for your response.
    Below are my responses

    (a) which country are your investments in ( Indian stocks or what?)? -> India

    (b)  what type of  income -- sale  ( capital or ordinary ), interest, dividend  or what ? ->  Long Term Capital Gain(Equity sales)

    (c) Are you having TDS on this income  or is  this unrealized  income/gain ? -> No

    After manually adding my income details, system is asking me to provide 1099-B which I don't have, and there is no option to skip on this portal

    Employee
    February 17, 2025

    @akhilsuri194 ,

    Now I am confused -- because I thought India requires  taxes be held at source. Are you selling Indian shares/equities through a broker in India  or is this  an option / warrant that you are exercising and selling in one go  OR RSUs being sold  or what .  I am  confused because  the TDS is normally a requirement. So tell me more please  ( update my knowledge bank )

     

     On you main question -- TurboTax asking for 1099-B and not letting you go past this requirement and your  choice  of  "  on this portal    suggests perhaps  you are using the on-line version.  I am not familiar with the screens / Questions of that version .    If I am right  ( please confirm ), I need to get another champ/expert familiar with the on-line version  help you.

    BWT -- are you not required to file a return in India for this India sourced income ( per the tax treaty ) ?

     

    Let me know if you are using the on-line product and I will page somebody else