How to get Foreign Source Income from VXUS Vanguard?

Forum|Forum|4 years ago
March 4, 2022
1 reply
3 views

Hi there, I have foreign tax paid from VXUS (VNGRD TOTAL INTL STK ETF) of Vanguard.

While entering the information for Foreign Tax paid section in TurboTax, I am asked for "Foreign Source Income". There was a page in my last year (2020) tax form with title "2020 Foreign Tax paid" with a column "Foreign Income" from which I had got the Foreign source income. But I can't find that page in my 2021 Vanguard tax form. I see the following. Please advise how to compute Foreign Source income from this info or how to find it. Thank you!

FOREIGN SOURCE INCOME PERCENTAGES
Fgn Source Inc Tot 90.34% Fgn Source Inc Qual 64.50%

Thanks again!

Mike9241

Level 15

multiply dividends by that 90+% same for FQD by 64+%

Mike9241

johnsantaclara1Author

Level 5

Hi @Mike9241 , Thank you so much! Requesting one confirmation on which of the following 3 options are correct: Thanks again.

Box 1a= Total ordinary dividends = 16000 (example)
Box 2a=Total Capital Gain distributions = 22 (example)
VXUX Total Dividends & distributions =8000 (example)
Total Dividends & distributions = Box 1a + Box 2a = 16022

So, should it be:

1) Foreign income = [(box 1a)+(box 2a)] *90.34/100 = (16022*90.34/100) = 14474.27?

or should it be:

2) Foreign income = [(box 1a)] *90.34/100 = (16000*90.34/100) = 14454?

or should it be:

3) Foreign income = [Total dividends and distributions from VXUS only =8000] * 90.34/100= 7227.2?

Thanks again.

FangxiaL

Level 10

You only pay foreign tax on foreign income. Based on your info, use $8,000 to multiple the percentage of foreign holdings, unless you have only one holding in your portfolio.

@johnsantaclara1

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