topic Foreign income tax on a dividend, is it deductible, and where to report it. in Deductions & credits

Foreign income tax on a dividend, is it deductible, and where to report it.

gonefshn11 — Tue, 10 Mar 2026 07:12:40 GMT

I have Foreign income tax withheld by a foreign country on a dividend paid this year.

1. Is it deductible, and

2. where to report it?

Thanks in advance for your assistance.

Re: Foreign income tax on a dividend, is it deductible, and where to report it.

NCperson — Thu, 29 Dec 2022 17:59:25 GMT

@gonefshn11 - it is deductible, but for most, it is better to take it as a tax credit....Form 1116 is where it gets reported. TT will walk you through that.

Re: Foreign income tax on a dividend, is it deductible, and where to report it.

Mike9241 — Thu, 29 Dec 2022 18:03:55 GMT

you can either deduct it on schedule A. or take a tax credit.

credit is usually better

if under $300 and if you're single ($600 if filing jointly) no form 1116 is required. if over it is

if you use Turbotax you should be asked about foreign taxes as you are filling out the dividend info

since you're using desktop you can go into forms mode

enter the tax on line 7 of the dividend worshhet

for an itemized deduction check box a

for a credit where your total foreign tax credits exceed the limit

you'll need to complete B, C and D

D is for the amount of the foreign source income included in the dividend. the 1099 should give you some info on this.

Re: Foreign income tax on a dividend, is it deductible, and where to report it.

Hal_Al — Fri, 30 Dec 2022 13:10:06 GMT

If the foreign tax paid is reported to you in box 7 on form1099-DIV, TurboTax should automatically claim the credit, after you enter the 1099-DIV