topic How do you enter a foreign qualified dividend in Turbotax? in Deductions & credits

How do you enter a foreign qualified dividend in Turbotax?

the6beadles — Sat, 20 Mar 2021 16:16:31 GMT

All previous answers, do not show how to complete the form but just say to include it, which is not helpful for peopling using turbotax.

Re: How do you enter a foreign qualified dividend in Turbotax?

rogge1722 — Sat, 20 Mar 2021 16:41:25 GMT

It is a good idea to know if TT needs the amount of foreign qualified dividends or not. If it needs the amount, TT will make “adjustments” which means TT will reduce the amount that will be used.

If the foreign qualified dividends are $20,000 or more, the adjustments must be made. If the foreign qualified dividends are less than $20,000, then do the following: check the amount on line 5 of the Qualified Dividends and Capital Gains Worksheet or line 18 of the Schedule D Tax Worksheet.

If the amount is greater than $326,000 if married filing jointly or greater than $163,000 if filing single or married filing separately or head of household then the foreign qualified dividends must be adjusted.

If your threshold level requires the “adjustments” to be made, enter the foreign tax credit interview and when you arrive at the screen with the header “No Other Income or Expenses”, select NO. The screen asking for foreign qualified dividends will eventually appear.

Re: How do you enter a foreign qualified dividend in Turbotax?

LinaJ2020 — Fri, 26 Mar 2021 04:14:41 GMT

First, you would need to enter a Form 1099-DIV. Here are the steps:

in TurboTax online,

Sign in to your account, select Pick up where you left off
At the right upper corner, in the search box, type in 1099div and Enter
Select Jump to 1099div
Follow prompts

Then you will go through the "foreign tax credit section" to file a Form 1116. Follow steps here:

At the right upper corner, in the search box, type in "foreign tax credit" and Enter
Select Jump to foreign tax credit
Follow prompts

Per IRS, if you have paid taxes on foreign dividend income to both foreign and the US tax authorities, the IRS allows you to claim a foreign tax credit on your US tax return. To claim this foreign tax credit, you would need to file a Form 1116 Foreign Tax Credit. This amount will show on Schedule 3 line 1 and line 20 on Form 1040.

Re: How do you enter a foreign qualified dividend in Turbotax?

BigYo54 — Fri, 02 Apr 2021 22:27:19 GMT

Any luck with this? I can't figure it out either.

Re: How do you enter a foreign qualified dividend in Turbotax?

LinaJ2020 — Tue, 06 Apr 2021 22:29:43 GMT

See my post from above

@BigYo54

Re: How do you enter a foreign qualified dividend in Turbotax?

BigYo54 — Wed, 07 Apr 2021 02:08:27 GMT

@LinaJ2020 - I followed those instructions and I'm only prompted to enter 'Foreign-Source Income.' I don't see any field to enter the 'foreign qualified dividend' amount. Do you by chance have any other guidance?

Re: How do you enter a foreign qualified dividend in Turbotax?

LinaJ2020 — Wed, 07 Apr 2021 02:20:28 GMT

You would first need to enter the information under 1099-DIV section.

In TurboTax,

Open up your program
At the right upper corner, in the search box, type in "foreign tax credit" and Enter
Select Jump to foreign tax credit
Follow prompts
On screen, "Tell Us About Your Foreign Taxes", check the first box ( You have no more foreign taxes to enter other than the 1099-DIV, 1099-INT, 1099-OID or a Schedule K-1) and others that apply
Follow prompts
Choose the Income Type, select "Passive Income"
On screen, "Country Summary", add a country to continue
On the screen, "Reporting Foreign Taxes Paid", select "Yes"
The program will take you back to the screen "Where Did You Receive Dividend Income From?", select your country and continue
See image below

@BigYo54