Thank you Mike.
This is new to me, so does this sound correct to you?
From p.9 of the 1116 instructions, I don't have to file schedule D and I must adjust the amount of my foreign source qualified dividends and capital gain distributions because both of the following apply.
- Line 5 of the Qualified Dividends and Capital Gain Tax Worksheet is greater than zero.
- Line 23 of the Qualified Dividends and Capital Gain Tax Worksheet is less than line 24 of that worksheet.
However, the adjustment exception also applies to me because:
- 1. Line 5 of the Qualified Dividends and Capital Gain Tax Worksheet doesn't exceed:
- a. $383,900 if married filing jointly or qualifying surviving spouse,
- b. $191,950 if married filing separately,
- c. $191,950 if single, or
- d. $191,950 if head of household; and
- 2. The amount of foreign source capital gain distributions (not sure where to find this info but as far as I am aware I have $0), plus the amount of your foreign source qualified dividends, is less than $20,000.
Thus, my understanding is I do not need to make an adjustment. Assuming this is correct, then back to my original question and your initial reply, I would NOT include the U.S. Possession dividends from the muni bond fund in the foreign dividends receive calculation when prompted by turbotax. Instead, I would only put 0.9M from my example. Does this sound right?
