AmyC
Employee Tax Expert

Deductions & credits

Let's start at the beginning and go through now that we have more information. 

  • Foreign tax paid: I see your negative numbers are foreign tax paid - money you earned that was removed from the account to pay the tax. Box 7
  • Foreign dividends: net received + foreign tax withheld. Your broker did the math for you on your tax form and included the gross in box 1a.
  • Foreign source income: In your case, the income from foreign sources is your foreign dividends. You don't mention any other foreign income. You can just add up all the section totals.

 

The section you show above is around $2k foreign income and about $300 in foreign tax. and you have more so I would recommend the credit as it is a dollar for dollar reduction of your tax bill. If your itemized deductions are significantly higher than standard deduction, you can try it as a deduction.

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