Solved: I have a minor dividend income (~$200) in Germany, which have been already taxed there. They don't provide 1099-DIV. Do I need to take any actions because of this ?
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I have a minor dividend income (~$200) in Germany, which have been already taxed there. They don't provide 1099-DIV. Do I need to take any actions because of this ?

 
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Level 9

I have a minor dividend income (~$200) in Germany, which have been already taxed there. They don't provide 1099-DIV. Do I need to take any actions because of this ?

You should report the dividend income (regardless how small) on your tax return.  You are correct that foreign institutions do not issue forms 1099-DIV.  In TurboTax, however, you should report the amount AS IF you have received the form. If you paid foreign tax on the dividend, please be sure to enter the amount in the Foreign Tax field of the form. 

  1. Federal Taxes
  2. Wages & Income
  3. Interest and Dividends - select Dividends on 1099-DIV

Some notes in case you need them...

  • Single filers who paid $300 or less in foreign taxes, and married joint filers who paid $600 or less, can omit filing the foreign tax credit form (Deductions & Credits>Estimates and Other Taxes paid>Foreign taxes)  However, using the form enables you to apply any credit balance to future tax years. Without filing Form 1116, you give up this carryover tax break.
  • IF the credit is more than above amount, please visit Foreign Taxes section (steps above) to claim foreign tax credit
  • You may have to file form Fincen 114, if your foreign account(s) exceed $10000 at any time during 2016.  You have to file it through the Treasury website: http://bsaefiling.fincen.treas.gov/NoRegFBARFiler.html

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Level 9

I have a minor dividend income (~$200) in Germany, which have been already taxed there. They don't provide 1099-DIV. Do I need to take any actions because of this ?

You should report the dividend income (regardless how small) on your tax return.  You are correct that foreign institutions do not issue forms 1099-DIV.  In TurboTax, however, you should report the amount AS IF you have received the form. If you paid foreign tax on the dividend, please be sure to enter the amount in the Foreign Tax field of the form. 

  1. Federal Taxes
  2. Wages & Income
  3. Interest and Dividends - select Dividends on 1099-DIV

Some notes in case you need them...

  • Single filers who paid $300 or less in foreign taxes, and married joint filers who paid $600 or less, can omit filing the foreign tax credit form (Deductions & Credits>Estimates and Other Taxes paid>Foreign taxes)  However, using the form enables you to apply any credit balance to future tax years. Without filing Form 1116, you give up this carryover tax break.
  • IF the credit is more than above amount, please visit Foreign Taxes section (steps above) to claim foreign tax credit
  • You may have to file form Fincen 114, if your foreign account(s) exceed $10000 at any time during 2016.  You have to file it through the Treasury website: http://bsaefiling.fincen.treas.gov/NoRegFBARFiler.html

View solution in original post

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