It is a good idea to know if TT needs the amount of foreign qualified dividends or not. If it needs the amount, TT will make “adjustments” which means TT will reduce the amount that will be used.
If the foreign qualified dividends are $20,000 or more, the adjustments must be made. If the foreign qualified dividends are less than $20,000, then do the following: check the amount on line 5 of the Qualified Dividends and Capital Gains Worksheet or line 18 of the Schedule D Tax Worksheet.
If the amount is greater than $326,000 if married filing jointly or greater than $163,000 if filing single or married filing separately or head of household then the foreign qualified dividends must be adjusted.
If your threshold level requires the “adjustments” to be made, enter the foreign tax credit interview and when you arrive at the screen with the header “No Other Income or Expenses”, select NO. The screen asking for foreign qualified dividends will eventually appear.
