Need help with this calculation for our mutual funds with Vanguard reported on 1099-DIV:
Foreign source income percentages show on 1099-DIV as Fng Source Inc Tot 80.68% and Fng Source Inc Qual 59.33%. Which percentage is the correct one to use?
I had originally thought the calculation was the dollar amount of ordinary dividends multiplied by one of the above percentages.
However, the Vanguard form "Percentage of the fund’s total ordinary dividends derived from U.S. government obligations in 2025" states: If your state allows an exclusion, refer to the next page for the percentage of ordinary dividends derived from U.S. government obligations that may be excluded for each fund that was invested in. To determine the portion of dividends that may be exempt
from state income tax, multiply the amount of “ordinary dividends” reported in Box 1a of Form 1099-DIV by the percentage listed in the following table.
The amount of each ordinary income distribution you received is reported on your 1099:
• For Vanguard brokerage accounts: In the detail portion of your 1099 Tax Statement, see Details for Dividends and Distributions. For each fund, subtract from the Total Dividends and distributions any Long-term capital gains, or any Nondividend distributions, or both.
For one 1099-DIV form, ordinary dividends minus long-term capital gains is a positive number; then I apply one of the percentages.
For the other 1099-DIV form, ordinary dividends minus long-term capital gains is a negative number. What do I do in this case if indeed it is correct to subtract the long-term capital gains?
Thank you.
