How should I fill the foreign dividend in turbotax?

[sikaozhe]

I received a dividend through ESPP from a German company in 2019. I spent the whole year in US and need to file tax for the foreign dividend. I asked for the 1099 form. since they are not in us and they only provide a dividend confirmation form to Germany participant for tax purpose.  From the dividend form, there are items like, Gross Dividend,  Capital Gains Tax Amount, Total German Tax, Net Dividend. I do not know how to fit these information into the turbotax. Would someone give some suggestions? What should I do to avoid double tax, since it is already taxed by Germany.  Thanks in advance.

[ThomasM125]

You would enter a mock form 1099-DIV entry in TurboTax. You would enter the income in box 1(a). Only domestic companies would pay qualified dividends, so box 1(b) would be left blank.

You would enter the foreign tax paid in box 7. You will get a foreign tax credit for it. If the foreign taxes are under $600 married or $300 single filer, you only need to enter the form 1099-DIV to get the credit. If they are more, you need to answer the questions in the "Foreign Taxes" section in TurboTax, under "Estimates and Other Taxes Paid", in the "Deductions and Credits" section of TurboTax.

The only other thing you should need to enter would be capital gain distributions in box 2(a), if any were realized that you know of. 

[sikaozhe]

Thank you. Do you mean I should enter "Gross Dividend" or "Net Dividend" in box 1(a)?  "Gross Dividend" minus "German tax" is "Net Dividend". Also I do not find Capital Gains from the form. feel like in a puzzle...

[AnnetteB6]

You would enter 'gross dividend' in box 1a. 

That is the amount that would be taxed, the net dividend is just the amount that you actually received after the German tax was paid.  

@sikaozhe

[wendywang]

I had an error Form 1116.  Missing Qual div and LT cap gains.

I have paid Foreign tax, so need to fill Form 1116  to get credit. 

I paid foreign tax $xx; Foreign div $yy.  

Foreign tax credit computation worksheet:

c,f, and g, m has $yy; h (qual div and LT capital gains is missing).  what should I put? $yy (div) - $xx (tax paid) 

[LinaJ2020]

You should have entered a 1099-DIV for the foreign dividends you received and foreign taxes paid before entering the Form 1116.  ( box 7 on Form 1099-DIV is where you enter foreign tax)

As you go through the Foreign Tax Credit section, you would enter the amount of foreign dividends you received and the amount of foreign taxes you paid.  See steps below:

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
• Choose the Income Type, select "Passive Income"
• Follow prompts

If you paid taxes on the foreign dividends to both foreign and US government, you may claim a foreign tax credit on a Form 1116 if it's more than $300.

@wendywang

[wendywang]

follow the process, it ask any foreign qualified dividends or long term capital gains. where to get this?  it tell me the min. qualified dividends =1b+7d-1a.   (how to get  foreign qualified dividends? 1b+7d-1a? 

[MarilynG1]

@wendywang You should have a statement from your broker along with your 1099-DIV that tells you the amount of your Foreign Dividends.

If your statement reports amounts for several countries, you can add the amounts together and enter the total amount with the country 'RIC' (screenshot). 

Click this link for more info on Reporting Foreign Dividends.

[MelT1]

My 1099-DIV form separates the foreign dividend amount into non-qualified and qualified dividends.  Which amount do I use to enter in the free form field next to "Foreign Dividends Received".  Should I enter the amount for the qualified dividends or the non-qualified dividends?  Or do I add the amounts together and include the total of the qualified and non-qualified dividends in this field? 

[AmyC]

For the foreign dividends, only the qualified ones are reported and used on form 1116 for credit. See Instructions for Form 1116 (2021) | Internal Revenue Service

[MelT1]

Form 1116 says it is to claim the foreign tax credit.  I'm trying to determine what to enter for the field labeled "Foreign Dividends Received" on the page where you report foreign dividends.  What I'm trying to determine is the figure that is reported in this box.  My 1099 - DIV form separates my Foreign Dividends into Non Qualified and Qualified and I'm not sure which of these figures is entered into the box to report the Foreign Dividends Received.  I already entered the Foreign Tax Paid in a different screen.  

[GeorgeM777]

Enter your foreign qualified dividends.  A foreign corporation is a qualified foreign corporation if it is eligible for the benefits of a income tax treaty with the United States.  You may not get a credit equal to the entire amount of foreign taxes paid; however, TurboTax will calculate what foreign credit you are entitled to receive.  

@MelT1

[minh4995601]

Hi @MarilynG1. You posted an response to this thread, How should I fill the foreign dividend in turbotax... (intuit.com) back in 2021.  I'm curious what did you use to calculate the value of $50 foreign dividends received?  The 1099-DIV form I received only has box 1a, 1b, 7, and 8 filled.