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March 28, 2023
Question

No 1099-DIV form - How do I report Dividend income AND foreign taxes paid?

  • March 28, 2023
  • 1 reply
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I received dividends from overseas and received no 1099-DIV form.  How do I report income from the dividends and the taxes that were paid to a foreign government?

 

Sincerely,

JJ

1 reply

JohnB5677
March 28, 2023

You should post the foreign dividend report as if it was a 1099-DIV.

 

To manually post a 1099-DIV

  1. Select Federal
  2. Wages & Income 
  3. Scroll to Investments & Savings and 
  4. select Show More,
  5. Start or Revisit next to Dividends on 1099-DIV - Okay! 
  6. Time to kick off your investments! 
  7. Yes, on the screen Did you receive any dividend income? then Continue.
    • If you see the screen Your investments & savings or Here's your 1099-DIV info, select. 
    • Add investments or add another 1099-DIV, then Continue.
  8. Choose how you'd like to enter your 1099-DIV:
    • If you'd rather manually enter your form, select. 
      • Change how I enter my form, select. 
      • 1099-DIV, then 
      • Type it in myself on the following screen.
  9. Follow the on-screen instructions to enter the info from your 1099-DIV.
  10. At the bottom of the page, click the box for My form has info in other boxes (this is uncommon).
  11. This will bring up a new set of boxes.
  12. Post foreign taxes in Box 7

You will then have to file for the Foreign Tax Credit

  1. Go to Deductions & Credits
  2. Estimates and other taxes paid.
  3. Select Foreign Tax Credit.

Make sure you've already entered all your foreign income. 

  1. When you reach the screen Do You Want the Deduction or the Credit? select the option you prefer for your situation.
  2. If you select Take a Credit:
    • Select Continue on the next screen, then select No to fill out Form 1116
    • When you reach the screen Country Summary, select Add a Country
    • Answer the questions about your foreign income, taxes, and expenses on the following screens.
    • When finished, you'll be taken back to the Country Summary screen. 
    • If you have income from other countries to enter, select Add a Country. Otherwise, select Done.
    • Answer the questions on the following screens until you reach your Foreign Tax Credit Summary
    • If you’re finished with this section, select Done.
  3. If you select Itemized Deduction:
    • Enter your foreign taxes paid on the next screen. These should show up in the Deductions & Credits section of your tax return, under Other Deductible Expenses

In most cases, taking the credit works out better than the deduction. 

 

We'll help you decide which one's best for you when you go through this section.

 

If you choose to take the credit (most people do), we'll attach Form 1116Foreign Tax Credit, if your situation requires it.

 

 Note: You won't be able to take a credit or deduction for taxes paid (or accrued) on excluded foreign earned income or housing. This is because excluded income and housing isn't taxed in the first place.

 

Reminder: When you're in TurboTax, and you're not sure of something, select the (?) next to the topic for more information.

 

If this does not completely answer your question, please contact us again and provide some additional details.


 
 


 

 

 

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juham2013Author
March 29, 2023

Thank you!

JJ