Foreign Tax

Forum|Forum|6 years ago
March 13, 2020
3 replies
0 views

My 1099-DIV has foreign taxes paid in line 7 and "See detail" for line 8 (Foreign country or US possession). The Foreign tax withheld in all the detail entries is “Various” rather than a specific country name. The Foreign Income and Taxes Summary listing of all income has no entry for the country (the column is blank). I enter “various” for the country in TurboTax. What is confusing is that the next screen asks, “You still have some dividend income that hasn’t been reported to a country. Do you want to continue so you can select a country to report dividend income on?” I don’t have any other dividend income and there is no country given anywhere on the 1099 composite, so I answer, “No.” Is this question just a safeguard? Am I missing something or am I done with the foreign tax credit section?

K

klehnhardt

When entering the Foreign Taxes Paid on all your Form 1099-DIV is less than or equal to $300 ($600 if Married Filing Jointly). that you do not need to designate what country the Dividend income is from. The foreign taxes will be entered as tax credit.

If you need to report the income you need to look through the dividend listing from your investor and add the Dividend Income (not Qualified Dividend) to get the total income. Instead of entering different countries, you should enter RIC as the country.

K

kevinr12240Author

Employee

Thank you for your quick response.. I gather answering the questions as I did is correct. I am curious, when does one indicate "Various" vs. "RIC" for the country?

AmyC

Employee

On the Form 1116. That is where the IRS wants the breakdown of the countries and the amounts. They announced 2 summers ago that their goal is to have everything by country but there is just no way with mutual funds it will ever happen, so they get RIC.

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K

kevinr12240Author

Employee

Thank you for your response. I don't think I was clear enough in my last question: When no country name is given, when does one indicate "Various" and when does one indicate "RIC" when inputting foreign tax information? TurboTax allows one to enter either "Various" and "RIC" in the foreign tax section.

K

kevinr12240Author

Employee

Perhaps I should say, WHY does one indicate 'Various" instead of "RIC" (and vice versa) when there is no country given?

L

lebondav

Is the foreign tax credit not allowed for self-employment situations

E

ErnieS0

You can claim a foreign tax credit if you pay income tax or the equivalent to another country. However, you can’t claim a foreign tax credit on self-employment tax or the equivalent imposed by another country.

@lebondav

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