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February 22, 2025
Question

Confused about foreign tax paid 1099-DIV and IRS Form 1116

  • February 22, 2025
  • 1 reply
  • 0 views

I own some US-based ETFs that hold stocks in foreign companies, such as the Vanguard VEA ETF. The 1099-DIV statements from these ETF's indicate that I have paid $1,073 in foreign taxes. I have entered this amount in TurboTax, and I can see that it appears in Box 7 on the Form 1099-DIV-Worksheet.

 

Do I also need to enter this information on from 1116?

    1 reply

    AmyC
    Employee
    February 23, 2025

    Yes, you need to file form 1116 to calculate your foreign tax credit. Tax below $300 or $600MFJ, do not have to file Form 1116.

    Most people claim the credit rather than the deduction.

    Use/ select RIC for regulated investment company since that is how you earned your income rather than selecting a country.

     

    Reference: Claiming the Foreign Tax Credit with Form 1116 - TurboTax

     

     

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    February 24, 2025

    Thank you!