@dmertz @fanfare @Bsch4477
Suppose you have $21000 foreign sourced qualified dividend on which you paid 15% foreign tax because of a treaty with the US. Then you need to fill in form 1116 if you want to get a tax credit, but those rules state that if you have more than $20000 of foreign sourced qualified dividend you have to adjust the amounts with 0.4054 .
Declaring the $21000 as qualified yields a return that is $500 lower compared to declaring it as ordinary, hence my question whether I can choose to declare or not declare the qualified dividend part? Please note that I do not have a 1099-DIV as the foreign company shares are not publicly traded. Previous years the amount received was lower and I always declared it as qualified, but this is the first year I ran into exceeding that 20k threshold.
