Question

Foreign dividend reporting

Forum|Forum|5 years ago
March 15, 2021
1 reply
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My wife and I file jointly and she owns an international account that holds bonds. Those bonds have an estimated value above 100K and the dividend that she received was more than 30K.

The country does not tax this dividend distribution.

How do I report the dividend income and how do I report the foreign bank account?

L

linaj20201

To report the foreign dividend, you can simply report under Other Income. Here are the steps:

In TurboTax online,

Sign into your account, select Pick up where you left off
To the right upper corner, in the search box, type in "other reportable income" and Enter
Select Jump to other reportable income
Next screen, Other Wages Received, select No to continue
Next screen, scroll down all the way to the bottom, under Other reportable income, select Start
Next screen, Any Other Taxable Income? select Yes to continue

For foreign bank account, follow here:

At the right upper corner, in the search box, type in "foreign assets" and Enter
Select Jump to foreign assets
Follow prompts
On-screen, "Amounts Related to Foreign Financial Assets", enter information

Since you did not pay tax to the foreign country on this distribution, you cannot claim the foreign tax credit, unfortunately.

If you live in the US and meet one of the following criteria, you would need to file a Form 8938.

Unmarried individual (or married filing separately): Total value of assets was more than $50,000 on the last day of the tax year, or more than $75,000 at any time during the year.
Married individual filing jointly: Total value of assets was more than $100,000 on the last day of the tax year, or more than $150,000 at any time during the year.

For more information, click here: https://www.irs.gov/businesses/comparison-of-form-8938-and-fbar-requirements