Foreign Dividend

Forum|Forum|3 years ago
March 25, 2023
1 reply
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I received a 1099-DIV that shows I received a foreign dividend for $63.37 for shares held in a company that has its headquarters in EU but has stock traded in the US exchange. I already included this foreign dividend amount as a regular dividend earned from other sources. No foreign taxes were deducted on the dividend. My questions are:

1. I have already included the foreign dividend amount as a regular dividend. Is this a correct way to handle this dividend or do I need to file a form 1116 to show that this dividend is earned from foreign sources? If I do have to file 1116 how do I do that in TT?

2. If I have to file form 1116 then do I remove the foreign dividend from the dividend amount earned from non-foreign sources?

3. I earned the foreign dividend from the same source in 2021. My CPA at that time didn't file form 1116. Do I need to amend my 2021 return?

I have premier version of TT.

AnnetteB6

Form 1116 is used to claim a credit for foreign taxes paid, not to report that you received a dividend from a foreign-based company. Reporting the dividend as shown on Form 1099-DIV is all you need to do to report the income.

If your Form 1099-DIV did not indicate that you paid any foreign tax on your dividend income (check box 7 of Form 1099-DIV), then you should not need to report anything on Form 1116 with regard to the dividend you received.

Additionally, no amended return is needed for 2021 unless foreign taxes were paid on the dividend received in 2021.

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