In order to clarify and make it easy to see how these dividends inter relate, open up a new spreadsheet.
Column A is used for both qualified and unqualified dividends, aka “Ordinary Dividends.”
Column B is used for qualified dividends only.
In cell A1, insert the worldwide Ordinary Dividends. That is the amount in the 1099-DIV, box 1a. In Vanguard Speak, this is “Total Ordinary Dividends”.
In cell A2, insert the foreign source Ordinary Dividends. In Vanguard Speak, this is “Foreign Income.”
In cell A3, subtract A2 from A1. The result is U.S. sourced Ordinary Dividends.
In cell B1, insert the worldwide Qualified Dividends. That is the amount in the 1099-DIV, box 1b. In Vanguard Speak, this is “Qualified Dividends.”
In cell B2, insert the foreign source qualified dividends. In Vanguard Speak, this is “QDI eligible foreign income”.
In cell B3, subtract B2 from B1. The result is U.S. sourced qualified dividends.
Note that each cell in column A must be equal to or greater than the corresponding cell in column B.
You also have in the 1099-DIV, box 2a, Capital gain distributions. All you know is that is worldwide. Unless Vanguard states how much is foreign, consider it as domestic and will have no bearing on foreign transactions.
When you go thru the TT interview, it will initially ask for “Foreign Source Income”. That is amount in cell A2, foreign source Ordinary Dividends. Later in the interview, depending on your situation you may be asked to insert “any foreign sourced dividends or long term capital gains”. That is the amount in cell B2. The long term capital gains is referring to any foreign component in the 1099-DIV, box 2a, if any.
With regard to the country, it is RIC; (regulated investment company).
With regard to the State, I am not able to address that issue.
