It depends if it is a qualified or an ordinary dividend. Please read this Turbo Tax article written by GeoffreyG for more detail. The reason why this is important is that Qualified Dividends are taxed at the more favorable capital gains rate than ordinary dividends.
So the answer to the question is, if your dividend paid qualifies as a qualified dividend, report this in Box 1B. If an ordinary dividend, Box 1A. The foreign tax paid will be reported in Box 7 of the 1099-DIV.
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