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Income from stock / etf sales abroad

Forum|Forum|6 years ago
March 22, 2020
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where should I report my foreign income from investment accounts?

I know how to take tax credit but not sure where in the program to fill this income. Should I use:

1. interest and dividends -> foreign accounts -> it is saying to me that as my value is less thank 100k USD I don't need to fill

2. Less common income -> foreign earned income -> it seems it is related to employment

thanks

arek

Best answer by DavidD66

You would report the same way you would report the sale of stock in the US, only you wont have a Form 1099-B to enter. To do so in TurboTax, while logged in to your return,

Click on Search
In the Search Window type 1099-B
Click on Jump to 1099-B
Click + Add an Account (if the account you were trying to download is showing, delete it first)
Answer No to "Did or will you receive a 1099-B form or brokerage statement for these sales?"
Continue and report the sale of your investment sales abroad

If you pay foreign taxes on the foreign stock transaction, you will be allowed an offset for these foreign taxes on your US tax return. If you take a foreign tax credit, your US tax liability will be reduced by the amount of taxes that you would have paid if the transaction took place in the US (see this link Claim Foreign Tax Credit). If you take a foreign tax deduction on Schedule A, you will be allowed to deduct the full amount of the foreign taxes paid but you will need to itemize (which could limit your ability to take the full deduction). The TurboTax software will help you determine which of these options will lower your overall tax liability.

D

DavidD66Answer

You would report the same way you would report the sale of stock in the US, only you wont have a Form 1099-B to enter. To do so in TurboTax, while logged in to your return,

Click on Search
In the Search Window type 1099-B
Click on Jump to 1099-B
Click + Add an Account (if the account you were trying to download is showing, delete it first)
Answer No to "Did or will you receive a 1099-B form or brokerage statement for these sales?"
Continue and report the sale of your investment sales abroad

If you pay foreign taxes on the foreign stock transaction, you will be allowed an offset for these foreign taxes on your US tax return. If you take a foreign tax credit, your US tax liability will be reduced by the amount of taxes that you would have paid if the transaction took place in the US (see this link Claim Foreign Tax Credit). If you take a foreign tax deduction on Schedule A, you will be allowed to deduct the full amount of the foreign taxes paid but you will need to itemize (which could limit your ability to take the full deduction). The TurboTax software will help you determine which of these options will lower your overall tax liability.

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