Determining Dividends from a foreign country or U.S. possession.

[OrdAandM1979]

Hello Turbo Tax family!   (I’m using TurboTax Premier)

Q: For Federal Taxes 2025 Income Summary, “Interest and Dividends” section; how do I determine the portion of dividends that was from a foreign country or U.S. possession if it is not clearly stated on the 1099-DIV?  (Or does this even matter if the dividends are from a Regulated Investment Company (RIC)?)

I have an International mutual fund and received a 1099-Div which show amounts in Box 1a (Total Ordinary Dividends), Box 1b (Qualified Dividends), Box 2a (Total Capital Gain Distributions) and Box 7 (Foreign Tax Paid).  There is no Box 8.  The instructions on the back of the 1099-Div state: “Box 8. This box should be left blank if a RIC reported the foreign tax shown in box 7.”

However, because I paid foreign taxes (Box 7), TurboTax is asking me to enter “the portion of dividends that was from a foreign country or U.S. possession.”  I’ve reread the 1099-Div more than once as well as read the mutual fund prospectus and it is not clear what dividends are from a foreign country.  Am I supposed to enter the amount shown in Box 1a? Box 1b? Both 1a +1b? 

Please advise on how I should proceed, and as always thank you for your help.

[MaryK4 · Accepted solution]

This information is usually provided in supplemental information provided with your 1099-DIV or 1099-B (if you have a combined statement.)  You do need to report the foreign income associated with the foreign tax for the credit.  In general, unless the entire fund is foreign source, you do NOT want to include the entire 1a or 1b amount.  It is in the year end summary, so look through carefully and contact your broker if you cannot find it.  The Box 8 omission for RICs is for their reporting purposes on the 1099-DIV, but not yours as individual taxpayer.

[OrdAandM1979]

Thank you very much.  I had to search a little on the company website (documents section) to find the supplemental information, but I found exactly what I needed (right where you said it was).  Thank you!