How does TT calculate 1099-DIV box 7 line d Foreign source amount included in dividends?

[dghemmes]

There is nowhere on the 1099-DIV I received from Vanguard anything about Foreign Dividends (only about Foreign taxes paid) How does TT come up with a foreign dividends number?

[JohnB5677 · Accepted solution]

I'm not sure where you're finding the need to post the value of the foreign income, but are these dividends that you received from mutual funds?

If so, you will have to get the fund breakdown from your broker.

There will be a column with the country and the Foreign Source Income percentage.

Multiply that percentage by the value in 1a of your 1099-DIV.

[dghemmes]

on 1099-DIV box 7 line d TT put in a number. My question is how did TT come up with this number? Vanguard does not breakdown dividends between foreign and US, so how the heck does TT know which part is foreign????

[Mike9241]

Turbotax does not determine that amount it must come from some form or schedule provided by Vanguard but it is not needed unless you have foreign tax credits over the threshold and therefore are filing form 1116.

[dghemmes]

You are wrong. The number in TT is nowhere in the data I entered (manually!!) from my paper form 1099-DIV. And the program also does not have a link to the source. So where does this number come from??? I would attach a copy of the 1099-DIV that is in TT but I don't see a way to add an attachment

[dghemmes]

By the way, I just changed all the numbers on the form 1099-DIV and the amount in box 7 line d is still the same. Even though with the fake numbers it is now higher than all the dividends received.

[JulieS]

The information in this box comes from other parts of the form. 

The "About foreign source dividends" information reads: "Enter the amount included in box 1a that is from a foreign or non U.S. source. If you leave this blank, the program will assume the entire dividend amount is from foreign sources. Form 1116 will use this information."

In other words, if you don't enter an amount there, TurboTax will use the amount from box 1a of the same form. 

Since you are clearly looking at this in Forms mode, this is a field you can edit if you think TurboTax has picked up an incorrect number. 

As far as the number not changing when you change all the other numbers, that happens when a field is from another source. 

To get your return done and filed, I suggest either deleting the 1099-DIV and entering again, or edit the 7d amount in Forms mode.