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Does Pennsylvania allow a tax credit for foreign income taxes on taxable dividend income?

I have dividend income that is taxable in Pennsylvania and was taxed in another country. Is a foreign tax credit or deduction allowed by Pennsylvania?

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1 Best answer

Accepted Solutions
maglib
Level 11

Does Pennsylvania allow a tax credit for foreign income taxes on taxable dividend income?

You get a credit only for Federal Taxes for fgn taxes paid.  Not on your state returns.
in the 1099-div  section of the interview.  under the 1099-div there should be an amount in Box 6  note you will have to check a box that your 1099 has more than just these boxes to be able to input an amount in box 6.  You then take a federal deduction during the Deductions & Credits interview for Foreign taxes paid.
**I don't work for TT. Just trying to help. All the best.
***Say "Thanks" by marking as BEST ANSWER and clicking the thumb icon in a post and that I solved your question
**Mark the post that answers your question by clicking on "Mark as Best Answer"
I am NOT an expert and you should confirm with a tax expert.

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1 Reply
maglib
Level 11

Does Pennsylvania allow a tax credit for foreign income taxes on taxable dividend income?

You get a credit only for Federal Taxes for fgn taxes paid.  Not on your state returns.
in the 1099-div  section of the interview.  under the 1099-div there should be an amount in Box 6  note you will have to check a box that your 1099 has more than just these boxes to be able to input an amount in box 6.  You then take a federal deduction during the Deductions & Credits interview for Foreign taxes paid.
**I don't work for TT. Just trying to help. All the best.
***Say "Thanks" by marking as BEST ANSWER and clicking the thumb icon in a post and that I solved your question
**Mark the post that answers your question by clicking on "Mark as Best Answer"
I am NOT an expert and you should confirm with a tax expert.
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