FIEN alternative for foreign banks with no FIEN.

[schaffer4492]

Turbo tax wants a FIEN for dividend reporting for foreign banks but this bank has no FIEN. How do I complete the 1099 Dividend form on Turbo Tax?

[DaveF1006]

My suggestion is this. Instead of reporting this in the dividend section, report it here to bypass the FEIN requirement.

1. Navigate to Federal > Wages & Income.
2. Scroll down to Less Common Income and select Miscellaneous Income, 1099-A, 1099-C.
3. Select Other reportable income (at the bottom of the list).
4. Answer Yes to "Any Other Taxable Income?"
5. Enter a description (e.g., "Foreign Dividends - [Bank Name]") and the amount in U.S. Dollars

If you are claiming a Foreign Tax credit report in the following manner. 

1. Go to Deductions & Credits > Estimates and Other Taxes Paid. 
2. Select Foreign Taxes and click Start.
3. When asked "Do you want the deduction or the credit?", select Take a Credit.  
4. As you navigate through the screen, Select Passive Category Income (this is the category for dividends and interest).
5. Country Selection: Choose the specific country where the bank is located. if you aren't sure, pick RIC if from a mutual Fund or various. 
6. Gross Income: Enter the same gross dividend amount you entered in Steps 1 when you get to this section
7. Ignore the expenses and the other information listed in this section. 
8. Taxes Paid/Accrued: Select Paid and enter the date (usually 12/31/2025 for the full year's total).

Simplified Limitation: If TurboTax asks if you want to use the "Simplified Limitation Election," say Yes—it saves you from complex math regarding "itemized deduction apportionments."

[TexasTea]

@DaveF1006 The OP doesn't mention whether the dividends are qualified or not, but under various tax treaties, many foreign dividends are considered qualified, and therefore eligible for a lower tax rate.  If you report  qualified dividends under "Other Taxable Income" won't you miss out on that tax savings?

See this link for more info about how foreign dividends become qualified by tax treaties:  https://www.irs.gov/pub/irs-drop/n-24-11.pdf

The list of countries in that document would include most of the world's biggest banks, so it may be applicable in the OP's situation.