Question

Dividend received from companies in India and taxes withheld

Forum|Forum|4 years ago
April 7, 2022
1 reply
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Shares are held in a Depository account in India. Shares of 50 companies are held in the Depository account. Dividends are credited to the Bank account by the individual companies after with holding tax.

The guidance given for Dividends received from Foreign companies is to manually enter 1099 Div.

When entering this foreign dividends from 50 different companies -

1. Are we to enter one consolidated 1099 Div for the total dividend received under the depository account or individual entries for each company?

2. Are we to enter the taxes with held in box 7 Foreign Taxes paid?

Thanks for the help.

TurboTax Self Employed Online

DaveF1006

Yes, you may enter the consolidated 1099-DIV as one entry and report the total foreign tax payments in Box 7. If you need to file a Form 1116 to claim a foreign tax credit, you will list the countries as various when you are prompted to enter this information.

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S

SriganAuthor

Thanks.

Just to bring in clarity the Depository institution or the bank is not issuing any 1099 Div. The dividends are credited to the foreign bank account by the Companies directly after deducting withholding tax,

When entering information in Form 1116 for Foreign Tax credit only the net taxes paid or accrued (after any tax credits ) have to be entered - is that right?

Thanks

D

DianeW777

Yes. The credit that is allowed to be used is the actual tax paid so this would be the amount after any credits. Enter the actual tax paid to the foreign country (countries) after any credits have been applied.

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