New for 2017 is the following flaw: If there is an entry in 1099-DIV box 6, TT will immediately and incorrectly require an entry in box 6d and will mark it as an error until an amount is entered. Box 6d is “the foreign source amount included in dividends.” If F1116 is filled out, there is a screen to input that amount which TT will insert into box 6d and thus clear the error. If F1116 is not filled out because the user elects to use the exemption or the deduction, then bring up the 1099-DIV worksheet and type a zero into box 6d to remove the error.
If you are filling out F1116 and the screen is asking for the foreign source amount, then the following applies.
In addition to the 1099-DIV, the broker/payer normally issues a document usually referred to as “Statement of Additional Information” or “Year-End Summary Information” or similarly titled. With this document, the starting point is the Foreign Tax data. It will list all the companies, the country and the tax paid by each company. Then cull through the qualified and unqualified lists to locate each company and extract the dividends paid.
For mutual funds that are “Global”, somewhere on their website they will have a list of all the funds that have domestic/foreign dividends paid and will give a ratio that you can use to calculate the foreign amount.
