Turbo Tax tells me I have $x of "Total income" (Div + Cap Gains) reported for a given fund. I can match that number on the 1099. (I have this for multiple funds actually, but same question for each).
That fund has an amount under "Foreign Taxes paid" (box 7).
I then have to fill in for Turbo Tax, "How much of this income was from foreign countries?"
I know to use the percentages reported by the FI under "Reporting for foreign taxes paid", or some similar language. There are 2 percentages however, "Foreign source income percentage %" and "Foreign source qualified dividend %"
Much of the time the two percentages are the same, but sometimes they are not. I have filled out the calculation always using "Foreign source income %", but I just thought - since "Total income" for that fund consists of cap gains and dividends, if the percentages are different should I apply the "Foreign source income percentage %" to the Cap Gains amount, and "Foreign source qualified dividend %" to the Div amount? Or should I do something different? Not sure why they give me 2 percentages if I don't do it this way.
Thanks!
