Deductions & credits
You can report it under Other Income so that you will be able to e-file. Here are the steps:
In TurboTax online,
- Sign in to your account, select Pick up where you left off
- To the right upper corner, in the search box, type in "other reportable income" and Enter
- Select Jump to other reportable income
- Next screen, Other Wages Received, select No to continue
- Next screen, scroll down all the way to the bottom, under Other reportable income, select Start
- Next screen, Any Other Taxable Income? select Yes to continue
- Enter a description and the amount.
Technically, you would enter a Form 1099 for interest, dividends to create a Schedule B that goes to the IRS. However, with a foreign entity, you would not have a US FEIN to qualify for the e-file. For the workaround, follow the instructions from above. To the IRS, as long as the total amount is reported on your taxes as Other income on line 7a Form 1040, you should be Okay.
If you have also paid taxes to a foreign country, you can claim a foreign tax credit on your US return. Here are the steps:
In TurboTax online,
- Open up your TurboTax account and select Pick up where you left off
- At the right upper corner, in the search box, type in "foreign tax credit" and Enter
- Select Jump to foreign tax credit
- Follow prompts
- On-screen, Tell Us About Your Foreign Taxes, select None of these apply and Continue
- Follow prompts
- On-screen, Choose the Income Type, check Passive Income
- Follow prompts
- On-screen, Other Gross Income-Foreign country, enter description and amount
- Follow prompts,
- On-screen, Foreign Taxes Paid-foreign country
- Under Foreign Taxes on Other Income, enter the amount
- See the images below
