My spouse has a foreign brokerage account based in South Korea. The account has stocks in several US companies. The dividends paid by these US corps are subject to a 15% corporate withholding tax in the U.S. These taxes are not tied in anyway to her SSN and no 1099s are issued due to the account being a foreign broker. How can we report that $X amount of dollars was withheld at the source for these dividends?
Oddly, since the dividends are qualified dividends and not subject to tax due to our income threshold, if I reduce the dividend total by these taxes and report a lower dividend income amount, this actually increases our tax liability.
