I own a small amount of German ADR stocks, and recently received the annual dividend. German dividend tax was withheld automatically. I am curious if I will also get a US dividend tax (double taxation) or if that foreign tax gets offset in some way from US taxes.
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assuming you are a US citizen you are taxed on your worldwide income inluding these dividends, to avoid double-taxation you are entitled to a foreign tax credit on your federal 1040. if you are single you can take the FTC of up tp $300 ($600 if married filing jointky) without filing form 1116. otherwise the form is required Turbotax will take you through the proper steps whn you enter your dividends
Usually, you will get a 1099-DIV for dividends from ADR stocks. Box 7 will show the foreign tax paid. Just entering the 1099-Div, in Turbotax, usually takes care of claiming the FTC
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