ADR dividends and double taxation

[Fuzydude64]

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. 

[Mike9241]

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 

[Hal_Al]

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