Does Part 1 of the 1116 Foreign Tax Worksheet refer to general income or only income from foreign sources?

[Periwinkle65]

My only foreign source income is from dividends. When filling out Part 1 of the 1116 worksheet, I was uncertain as to whether I am asked for 1a to provide total income from all sources or only the income from each country. Too, can you tell me please which source is referred to for lines g and h of Part 1? 

Thanks in advance for your assistance

[rogge1722]

If you only have dividends,  then  on line 1c “Interest and dividends from schedule B”, you insert the foreign Ordinary dividends for each country in  Column A, B, and C.  Here “Ordinary”  means all foreign qualified and unqualified dividends.

In line 1g “Ordinary Dividends” means all unqualified foreign dividends only.

In line 1h, “Qualified Dividends and LT Capital Gains” means all foreign qualified dividends and LT capital gains in the 1099-DIV box 2a if there are any which is usually not the case.

Line 1a and 1b would be used for rents, royalties, annuities, etc.

[pk]

@Periwinkle65 , agreeing with my colleague @rogge1722 , I am just wondering if you really need the form 1116  ( which  while recognizing your foreign taxes paid dollar for dollar, limits the allowable for the year based on ratio of Foreign income to World income).  This is because in many cases taking the safe harbor   US$600 ( for a joint return , US$300 for single filer ) may be more beneficial.  

Does this help ?

[Periwinkle65]

Thanks very much for your suggestion. I have paid almost $3000. in foreign taxes. In past years I have benefitted from filling out Form 1116. 

[Periwinkle65]

Thanks for your assistance. Yet, I have a continuing issue.  I filled in ordinary foreign dividends on line 1 C. There were no unqualified foreign dividends so I left line 1g blank . I then filled in the qualified foreign dividends on 1h . This filled in data was marked as erroneous with the explanation that I needed to supply a much larger amount to be consistent with the information supplied on Schedule B for dividends! 

To make matters more confusing, I am unable to clear the data filled in on the lines which follow! It is my impression that I needed to supply my total amount of income (rather than just foreign income) to derive a ratio which would enable me to determine the amount of credit for foreign tax payments. 

I have tried to go through the step-by-step interview for form 1116. Here the program lists only one of 2  brokerages which are the sources of my "VARIOUS" foreign income.  It lists a mutual fund account which occupies a different column labeled RIT! 

 In past years, I have not experienced problems with this form, but now I am stymied. 

[pk]

@Periwinkle65 , I am not sure I understand the issue here ----- here is  the  comments / explanations on  form 1099-DIV ( back of the form :(

"Box 1a. Shows total ordinary dividends that are taxable. Include this amount on
the “Ordinary dividends” line of Form 1040 or 1040-SR. Also report it on
Schedule B (Form 1040), if required.
Box 1b. Shows the portion of the amount in box 1a that may be eligible for
reduced capital gains rates. See the Instructions for Form 1040 for how to
determine this amount and where to report"

Does this help ?