Foreign Tax Credit: Qual Div and LT Cap Gains should have a value of at least $XXXX

[wendywang]

can you put the link for #6163451?

I have foreign tax paid amount and dividend from Foreign the stock.  how to find the foreign qualified dividends and Long team gains?

[LinaJ2020]

Please follow these steps:

Make sure you have entered the capital gain transactions somewhere in the program ( for example 1099-B section) to show you are paying taxes on your Form 1040.  

You will then enter info under Foreign Tax Credit section here: 

In TurboTax online,

• Open up your TurboTax account and select Pick up where you left off
• At the right upper corner, in the search box, type in "foreign tax credit" and Enter
• Select Jump to foreign tax credit
• Follow prompts
• On screen, "Tell Us About Your Foreign Taxes", do not check the first box. 
• (First box says -you have no more foreign taxes to enter other than the 1099-DIV, 1099-INT, 1099-OID or a Schedule K-1)". 
• Follow prompts
• Choose the Income Type, select "Passive Income"
• On screen, "Country Summary", add a country to continue
• On screen, "Other Gross Income", enter foreign capital gain and the amount.
• Follow prompts
• On screen, "Foreign Taxes Paid", under foreign taxes on Other Income, enter the amount

@wendywang

[LinaJ2020]

Please follow these steps:

Make sure you have entered the capital gain transactions somewhere in the program ( for example 1099-B section) to show you are paying taxes on your Form 1040.  

You will then enter info under Foreign Tax Credit section here: 

In TurboTax online,

• Open up your TurboTax account and select Pick up where you left off
• At the right upper corner, in the search box, type in "foreign tax credit" and Enter
• Select Jump to foreign tax credit
• Follow prompts
• On screen, "Tell Us About Your Foreign Taxes", do not check the first box. 
• (First box says -you have no more foreign taxes to enter other than the 1099-DIV, 1099-INT, 1099-OID or a Schedule K-1)". 
• Follow prompts
• Choose the Income Type, select "Passive Income"
• On screen, "Country Summary", add a country to continue
• On screen, "Other Gross Income", enter foreign capital gain and the amount.
• Follow prompts
• On screen, "Foreign Taxes Paid", under foreign taxes on Other Income, enter the amount

@wendywang

[TaxBloke]

Can you tell me what 7d is in your formula? (1b+7d -1a). I get that 1b and 1a is directly from my 1099-DIV.

Is 7d = Foreign ordinary dividend income?

I used your instructions and have A1, A2 and A3, as well as B1, B2 and B3 calculated. 

Thanks. This is my last stumbling block before I can submit my taxes. 

[DaveF1006]

Usually, you can find the information about the amount of foreign ordinary dividends in the supplemental statements that came with the 1099 DIV. It may be expressed as a whole dollar amount or as a percentage of the amount reported in Box 1A of the 1099 DIV. 

If you don't have or can't find this information, you will need to contact the broker to get this information, which is vital in order to complete the return.

@TaxBloke

[jessriedel]

In case it's useful for Vanguard users: The Vanguard consolidated 1099 form (which includes 1099-DIV), on the page "Mutual Fund and UIT Supplemental Information", lists "FOREIGN SOURCE INCOME PERCENTAGES" for each fund that has foreign source income.  The percentages listed are

Fgn Source Inc Tot

Fgn Source Inc Qual

Fgn Source Inc Adj

The first two, "Fgn Source Inc Tot" and "Fgn Source Inc Qual", matches up with the percentages listed in column 1 and 2 of the "Foreign tax credit information for eligible Vanguard funds" PDF, available here for 2021 tax year: https://personal.vanguard.com/pdf/FASFTCWS_R_012022.pdf

[I am uncertain about this paragraph:] I think the OP is looking for "Fgn Source Inc Qual" (i.e., Foreign source qualified income) because I think this is the sum of foreign source qualified dividends and foreign source long-term capital gains.  I think this percentage should be multiplied by "Total Dividends & distributions" for each fund to get the dollar value of the foreign source qualified income for that fund.  Then sum over all funds to get the total foreign source qualified income.

[nfeakins]

Same situation.  I took the "Foreign Source Income %" that is on the supplemental information and multiplied it by the "1B Qualified Dividends" to get what I needed to put in this box.

[kmorley2021]

I also have similar problem. In the Form 111, there is actually a number in line g "Ordinary Income". But line h "Qual. dividends and LT Capital Gains" is empty. Should I just copy the ordinary income value of line g to line h as qual. dividends?

[kmorley2021]

I have the same problem. I entered the foreign income when I enter 1099-DIV. And Turbo tax has put those numbers into line g of Form 1116 - Ordinary Income. It just seems that TurboTax doesn't know what Qual. Dividends is. Should I just copy the ordinary income onto line h for Qual. Dividends?

[kmorley2021]

Hi,

On my Charles Schwab 1099-DIV, it doesn't specify whether the foreign income is ordinary income or Qualified Dividends. When turbotax ask me for foreign tax credit income, I just put in that income. Then during review, turbotax complains that it doesn't have the number for Qual. Dividends. If 1099-DIV doesn't say whether it's qualified or not, should I just assume all the income is qualified dividends?

[DaveF1006]

Yes, unless you have any documentation proving otherwise, assume the dividends are qualified dividends just to move on in the return and not receive any errors in the end.

@kmorley2021