Foreign Dividend Income and Foreign Tax Paid

[dstautz1]

I am using 2025 TT for Mac. I have foreign dividend income on two 1099-Div from 4 countries and 1 RIC. Under Deductions and Credits in the Foreign Tax Credit section, it has me list each country and the one RIC. This is also under the Learn More that says I must report the countries not use Various as the 1099-Div states.  When I go to the next screen, I select the first country and the next screen asks which 1099 is it related to for that country and I select the correct one. I then select report income and the next screen asks how much income is from that country. I finish and select next and it comes up with the country list and I pick the second country and Report Income. The next screen then shows only one 1099. I select that and put in the amount of income. I go to Next and it moves on without going back to the country list. When I arrow back through the pages to the country list only the two countries with entries are listed. This must be a bug of some sort if I am truly supposed to report income by country as the Learn More states.

[DaveF1006]

It depends. The link to learn more says you need to report countries, but the IRS allows an exception, especially if your 1099s are from places like Vanguard, Fidelity, or Schwab.

1. You can group all foreign dividends from mutual funds or ETFs under the single country code "RIC" (Regulated Investment Company).
2. No need to list out several countries. Just create one "Country" called RIC, enter the total foreign income from your 1099s, and the total foreign tax paid.
3. The IRS knows mutual funds invest across many countries. Reporting with "RIC" is the standard, accepted way to handle this on Form 1116—no need for a long list of countries.

Once you start working on your foreign tax credit, there will be one contry listed, which is RIC.  When you select report income, there will be three check boxes to check. Then the program will have you verify the foreign income, earned from the dividends, for each check box.  

[dstautz1]

Sorry, but this reply doesn't get to the glitch in the system. I have dividends from individual stocks as well as foreign taxes paid on them, not RICs.

Future products would be better if a screen had rows for countries to be picked or RIC, columns for income and tax paid, all under the 1099-Div info so its tied to the proper 1099.

As an aside, I have not had this occur in past years on the TT for Windows product when entering the by country information in the foreign tax credit section.

[skipstiles]

Same problem here - sidebar instructions tell me to list by country but I have individual countries and a RIC. Not able to do so.

[kkellogg3]

I'm encountering this now (I'm using the web-based turbotax on a Mac).  I have one consolidated 1099 (Fidelity managed account) that has foreign stock dividends & tax pmts from 19 different countries, and also 8 different RICs - also with foreign dividends and tax pmts.  I entered the total dividends, and in the final check TT flagged an issue with the tax credit/deduction info (1116) and sent me back.  For the money & hassle involved, the tax credit is the way to go - but TT doesn't seem to be happy using 'various' for the countries and listing the total foreign dividends & tax payments.  When I try to enter the 19 countries and RICs, it seems like it only allows me to enter the dividends for a single country or the RICs - but think gets hung up again later.  Very frustrating.  I've uploaded the 1099 which includes the 1099B info - I think part of the problem is that it 'sees' the multiple countries & RICs on the 1099B, but doesn't seem to offer a clear way to enter the data individually by country.  Guess tomorrow I'll try to reach one of the TT pro folks to sort it as I spent several hours today with TT & ChatGPT and getting nowhere with different approaches

[DaveF1006]

The IRS generally allows you to aggregate foreign income under specific labels to avoid listing every single country, especially when it comes from managed accounts or mutual funds.

1. For the 8 RICs: You do not need to list the individual countries inside those funds. When TT asks for the country, select "RIC" (it is usually at the top or bottom of the alphabetized country list). You can group all 8 RIC dividends and their taxes into one entry under the "RIC" country designation. 
2. For the 19 Countries: If these are individual stocks (not funds), the most efficient way to bypass the "1116 hung up" error is to use the "Various" country designation. Some believe you must list every country for individual stocks. While technically the IRS likes detail, in a consolidated brokerage setting, aggregating them under "Various" is a widely accepted practice for passive dividend income to make the math on Form 1116 work.