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What is foreign source income when claiming tax credit on vanguard fund? Is it "QDI eligible foreign income"?

Forum|Forum|7 years ago
June 6, 2019
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Vanguard gives me: foreign tax, foreign income, QDI eligible foreign income. When claiming the foreign income tax credit TT asks for foreign-source income. What is that? The QDI number? Or the foreign income number? Or something else?

TurboTax Premier Online

Best answer by rogge1722

Foreign source income is the sum of unqualified dividends, qualified dividends and capital gains. TT wil ask for the amount of QDI (qualified dividends) only if the following holds:

- You have foreign qualifying dividends or long-term capital gains totaling more that $20,000, OR
- Your total income exceeds the following amount for your filing status:
- Married Filing Joint or Qualifying Widow(er): $223,050
- Single: $183,250
- Head of Household: $203,150
- Married Filing Separate: $111,525

R

rogge1722Answer

Employee

Foreign source income is the sum of unqualified dividends, qualified dividends and capital gains. TT wil ask for the amount of QDI (qualified dividends) only if the following holds:

- You have foreign qualifying dividends or long-term capital gains totaling more that $20,000, OR
- Your total income exceeds the following amount for your filing status:
- Married Filing Joint or Qualifying Widow(er): $223,050
- Single: $183,250
- Head of Household: $203,150
- Married Filing Separate: $111,525

F

fillingformfunAuthor

Thanks for the reply, TT isn't actually asking for QDI. It has my foreign tax, which is small (<$100) and after I verify that it asks for "foreign source income", but I'm not sure what that is supposed to be. Since the amount is small I ended up just switching to taking a deduction rather than a credit, and avoiding this question.

S

Shiggy

I just read this whole post. Isn't it frustrating that something so common (owning mutual funds that hold foreign investments) should be so difficult to report. Vanguard is giving less than adequate information and Turbo Tax Premier is totally confusing. I am a customer of both and they are doing a less than adequate job. I did manage to finally get past the errors in my return, but I am not sure I reported this correctly. I was wondering if anyone would be brave enough to post a mock up of a 1116 form to show how this should look (you need to over $300 single or $600 married to be required to fill one out)?

K

kgales

I am still confused about what to enter for foreign dividends received from a Vanguard Statement is it the "Foreign Income" or the QDI eligible foreign income"?? Please help, this is all I need to complete my tax return.

K

klehnhardt

On a Vanguard statement, there is a separate listing of all dividends. Usually on the statement there is a column for the foreign tax on the dividends. When you locate a foreign tax you should look to the left and you should see the dividend amount. Do not add the Qualified Dividend amount if there is an amount.

You will need to add all the dividend amounts to find the "Foreign Income" amount on the foreign taxes.