topic Form 1099 DIV Foreign source income in Deductions & credits

Form 1099 DIV Foreign source income

tjw1127 — Thu, 16 Jul 2020 01:01:20 GMT

There is no box number for that. Should I include that amount in income on my taxes?

Re: Form 1099 DIV Foreign source income

pk — Thu, 16 Jul 2020 04:25:54 GMT

@tjw1127 often 1099-DIV will only show total dividends, qualified dividends, foreign taxes paid ---- for you to get credit for that tax, and IF the total amount of foreign taxes paid is equal or less than safe harbor amount ( $300 for single and $600 for joint filers ), TurboTax will automatically create the credit for you without asking for more information. You will however need the foreign source income if you are require to file a form 1666 i.e. your taxes are more than the safe harbor amount. Note the form 1666 while recognizing the full amount of taxes paid, the allowable tax credit for the year is based on a ratio of foreign income divided by world income and often is far less than the taxes paid -- the rest is up for carry back or carry forward.

Does this help or you need more on this ?

Re: Form 1099 DIV Foreign source income

jtb5 — Mon, 20 Mar 2023 23:25:49 GMT

Hi,

HELP

First time getting a combination 1099 from a Brokerage.

1099 DIV

1- how do I find the Foreign source income

2-B7 Foreign Tax paid was $84.99. B6 has $0.00

3- I see a F1116 not a F1666

Re: Form 1099 DIV Foreign source income

DaveF1006 — Tue, 21 Mar 2023 13:40:36 GMT

If you are trying to determine the foreign sourced income amount from your qualified dividends that are reported on the 1099 DIV, this IRS article is a handy guide for determining the amount of qualified dividends that are foreign-sourced. With the small amount of foreign tax that was paid, I would recommend placing a 0 for foreign sourced income, as the article suggests.

If you are looking for the foreign source income, it may be disclosed in a statement that came with the 1099 DIV but if not, use the suggestion that the IRS made in iits article as well as my own suggestion. With that amount of foreign tax, I would suspect that the foreign sourced income is taxed at 0%.

The foreign tax paid will be put into Box 7 of the 1099 DIV form and the correct form is Form 1116.

@jtb5

Re: Form 1099 DIV Foreign source income

jtb5 — Sat, 25 Mar 2023 16:39:16 GMT

I just went to my tax return to work on this Foreign source income. I went to smart check and it said that "found no errors". My program did do an update but didn't download anything new.

How did this happen when I didn't fix the Foreign Source income error? How do I check this?

Thank you.

Re: Form 1099 DIV Foreign source income

AmyC — Tue, 28 Mar 2023 20:12:11 GMT

$85 of foreign tax paid is below the limit, $300, to require all the detailed answers on Form 1116.

You can look at your 1040 schedule 3, line 1, for the foreign tax credit. It carries to your 1040 line 20.

Reference: Form 1116, Foreign Tax Credit (Individual, Estate, or Trust)

@jtb5

Re: Form 1099 DIV Foreign source income

jtb5 — Sun, 02 Apr 2023 17:53:51 GMT

Thank you for responding, but do I have to fill out form 1116 if my foreign tax income is only$85.00?

Also, what do I enter for "Foreign source income"?

Thank you

Sorry I'm not understanding.

Re: Form 1099 DIV Foreign source income

jtb5 — Sun, 02 Apr 2023 17:56:19 GMT

Update,

I see that I received a response to put $0 in foreign source income .

Re: Form 1099 DIV Foreign source income

jtb5 — Sun, 02 Apr 2023 21:00:17 GMT

Amy,

I'm so sorry.

In your response did you mean that I don't need to fill out the Form 1116 because my foreign tax was only $85?

Also, it was suggested to me in an earlier post from DaveF1006, to put in 0% for Foreign Source income because of the amount of Foreign tax paid.

Would you agree with these statements?

Thank you for your time

Re: Form 1099 DIV Foreign source income

jtb5 — Mon, 03 Apr 2023 22:19:41 GMT

hi Dave

I'm so sorry.

In your response did you mean that I don't need to fill out the Form 1116 because my foreign tax was only $85?

Also, you suggested to me in an earlier post to put in 0% for Foreign Source income because of the amount of Foreign tax paid.

Would you agree with these statements?

Re: Form 1099 DIV Foreign source income

DaveF1006 — Mon, 03 Apr 2023 23:46:04 GMT

In this Turbo Tax article, you do not need to fill out form 1116 if you meet the following criteria.

If all your foreign-taxed income was 1099-reported passive income, such as interest and dividends, you don't need to file Form 1116, provided that any dividends came from stock you owned for at least 16 days.
Single filers who paid $300 or less in foreign taxes, and married joint filers who paid $600 or less, can omit filing Form 1116. But using the form enables you to carry forward any unused credit balance to future tax years; without filing Form 1116, you give up this carryover tax break.
If your income came from a U.S. territory such as American Samoa, Puerto Rico, Guam, or the U.S. Virgin Islands, special rules govern how you use Form 1116 for the FTC.

Since you do not have a Form 1116 reporting requirement, please ignore my earlier advice about reporting this as 0% as this should not be an issue without a Form 1116. This was a reporting question while you were reporting form 1116.

if $85 is your only foreign tax paid for the year, you may wish to delete your Form 1116.

If in Turbo Tax online;

Now, click on Tax Tools in the black left menu bar at the bottom of the form
Go to tools>delete a form
Delete Forms 1116.
If using the software, go to forms>select Form 1116>once it appears in the right portion of your screen, select delete form at the bottom of the screen.
Now log out and then back in your return. The changes should be complete.

Now once this is done, go to:

Now, click on Tax Tools in the black left menu bar at the bottom of the form
Go to tools>view tax summary
Now check Preview my 1040 in the menu bar and check Schedule 3 in your 1040. You should still see your $85 credit in line 1 Schedule 3 as a non-refundable credit.

@jtb5

Re: Form 1099 DIV Foreign source income

jtb5 — Tue, 04 Apr 2023 22:30:30 GMT

Really appreciate to your response.

Will your instructions work if I installed TT from a CD?

Thank you for your time.

jtb5

Re: Form 1099 DIV Foreign source income

MarilynG1 — Tue, 04 Apr 2023 22:45:39 GMT

Yes, you can delete Form 1116 in TurboTax Desktop by going to FORMS at the upper right.

From 'Open Form' at the upper left, type in 1116 (or search from the list of 'Forms in my return'.

When the form is open, click on Delete Form at the bottom of the page.

@jtb5

Re: Form 1099 DIV Foreign source income

jtb5 — Thu, 06 Apr 2023 22:57:05 GMT

I'm not finding a delete box for form 1116 at the bottom of the form.

Also I have a red ! by my 1099 Div in the list of federal forms.

Re: Form 1099 DIV Foreign source income

jtb5 — Fri, 07 Apr 2023 19:53:18 GMT

I tried several times to find the delete box for form 1116.

I decided to try checking the box in form B to have my Foreign income on schedule A. I won't get any benefit from this but it deleted form 1116!

Probably not the best way to do this but I need to get this filed!

Thoughts?

Re: Form 1099 DIV Foreign source income

Cynthiad66 — Mon, 10 Apr 2023 18:04:30 GMT

If the work around accomplishes your goal and the tax return is accurate, it is ok. IRS' main goal is to compute taxes accurately.

Re: Form 1099 DIV Foreign source income

jtb5 — Sun, 16 Apr 2023 15:35:38 GMT

Thank you for all your help.