Form 1116 - Foreign source qualified dividends calculation

Hi,

TT is asking me about foreign source qualified dividends. How do I calculate this?

My brokerage did not include any supplement information for 3rd party ETFs, and I am unable to find this information on iShare’s website. iShare has breakdowns of qualified dividend % and foreign sourced income %, just not foreign source qualified dividends.

Is it as straightforward as foreign source qualified dividend = 1099-DIV box 1b for this ETF * foreign sourced income %?

1316

Level 15

Mar 18, 2021 12:06:58 AM

if filing other than joint you can take a credit for foreign taxes for up to $300 without having to file form 1116. it's $600 if filing jointly.

if you need to file 1116 (ftc exceeds the limit above or you have a category of FTC other than passive)

if you have a breakdown of foreign tax by the fund and qualified dividend by fund an inexact method

would be proration FTC for the fund divided by the total dividend for the fund times the qualified dividend for the fund.

Level 1

Mar 18, 2021 9:57:22 AM

Hi Mike,

Thanks for the reply. I do need to file 1116.

I have the foreign tax paid (Box 7) and qualified dividend (Box 1b), but I am not sure how I would get proration FTC for the fund? I thought the whole purpose of TurboTax asking these questions is to figure out what the FTC should be, so how do I get that number beforehand?

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Form 1116 - Foreign source qualified dividends calculation