topic Foreign-Source Income for Vanguard VXUS in Get your taxes done using TurboTax

Foreign-Source Income for Vanguard VXUS

johnsantaclara1 — Mon, 09 Mar 2026 08:55:51 GMT

I am still confused about what to enter for foreign-source income for Vanguard.

I have had 3 funds in Vanguard in 2021 (VTI, VXUS and VWLUX) out of which only VXUX had "Foreign tax withheld-Various"

"VXUS Dividends+distributions"=$8000,

"total dividends+distributions"=16000,

Box 1a (Total Ordinary Dividends in 1099-DIV)=$15000

Box 1b (Total Capital Gain distributions in 1099-DIV)=$1000

Vanguard tax form did not provide foreign source income, but provided below:

FOREIGN SOURCE INCOME PERCENTAGES
Fgn Source Inc Tot 90.34% Fgn Source Inc Qual 64.50%

Turbo Tax "Foreign-Source Income" screen says : You reported $16000 of total iincome from Vanguard. How much of this income was from foreign countries?

Question:

Which of the following should I provide for Foreign source income?

Option 1) (Total Dividends+distributions*90.34%) = (16000*90.34/100) or

Option 2) (Box 1a*90.34%) = (15000*90.34/100) or

Option 3) (VXUX Dividends+distributions*90.34%) = (8000*90.34/100) ?

Thanks a lot!

Re: Foreign-Source Income for Vanguard VXUS

DavidD66 — Sun, 06 Mar 2022 23:30:55 GMT

You should use option 3, VXUS Dividends & distributions ($8,000 * 90.34%).

Re: Foreign-Source Income for Vanguard VXUS

platenscrews — Sun, 09 Mar 2025 16:33:13 GMT

DavidD66, I have seen you answer this question two different ways.

https://ttlc.intuit.com/community/taxes/discussion/vanguard-foreign-qualified-dividends-and-l-t-capital-gains/00/2554697

The link above shows you using the lower percentage. The .645 noted as Foreign Source Income Qualified.

But here you are recommending the higher percentage of .9034. Can you please clarify?

Re: Foreign-Source Income for Vanguard VXUS

DaveF1006 — Tue, 18 Mar 2025 20:32:00 GMT

It depends. This has two different types of dividends, ordinary dividends reported in Box 1A and qualified dividends reported in Box 1B. Here is how to determine the total amounts of your foreign dividends.

Multiply ($15,000)(.9034) =$13,551
Multiply ($1,000)(.6450)= 645
Total Foreign Dividends $14,196 This is the total amount of foreign dividends paid.

Re: Foreign-Source Income for Vanguard VXUS

jrodbx — Sun, 13 Apr 2025 01:49:35 GMT

I also have this same question, and I'm wondering if the previous response might be a case of double counting?

The number in box 1a (ordinary = nonqualified + qualified) includes the amount in box 1b (qualified), whereas the percentages were described "Fgn Source Inc Tot." 90.34% and "Fgn Source Inc Qual" 64.50%.

Which leads to think applying 90.34% to the total dividend amount is the correct answer.

Re: Foreign-Source Income for Vanguard VXUS

MarilynG1 — Wed, 16 Apr 2025 18:18:36 GMT

When reporting the amount of Foreign Dividends in the Foreign Tax Credit section, you're not reporting the income again (it's already reported in the dividend section). The amount you enter in the FTC section is just to relate the foreign tax paid with an income amount (no double counting).

The FTC is a complex calculation and includes many items on your overall return. The goals is to reduce your US tax for the foreign tax you paid, Any foreign tax credit you can't take (again, per the calculations), is carried over.

Here's more info on Claiming the Foreign Tax Credit.

@jrodbx