How to report foreign equity investment income with 1099-B. I am not able to find such option.

[akhilsuri194]

After adding all the details about foreign equity earnings, turbo tax is asking to upload form 1099-B. I don't get this form from my broker. Any idea how to skip it?

[pk]

@akhilsuri194  Namaste Akhil ji

(a)  which country are your investments in ( Indian stocks or what?)?

(b)  what type of  income -- sale  ( capital or ordinary ), interest, dividend  or what ?

(c) Are you having TDS on this income  or is  this unrealized  income/gain ?

Generally , foreign sourced incomes  are treated just like  domestic except that you do not have the  1099s involved/issued.  So you have to use dummy ones ( i.e. you recognize the income as if you had a 1099).

If any taxes were  paid  ( finalized  is better but TDS can work temporarily  with amendment required), this may be eligible for  foreign tax credit ( absent any constraints  by the tax treaty between  US and that foreign source country).

Your own Tax status  ( US person  or NRA  )  also plays into this. 

Please answer my questions  and I will circle back.  You can also PM me

[akhilsuri194]

Hi,
Thank you for your response.
Below are my responses

(a) which country are your investments in ( Indian stocks or what?)? -> India

(b)  what type of  income -- sale  ( capital or ordinary ), interest, dividend  or what ? ->  Long Term Capital Gain(Equity sales)

(c) Are you having TDS on this income  or is  this unrealized  income/gain ? -> No

After manually adding my income details, system is asking me to provide 1099-B which I don't have, and there is no option to skip on this portal

[pk]

@akhilsuri194 ,

Now I am confused -- because I thought India requires  taxes be held at source. Are you selling Indian shares/equities through a broker in India  or is this  an option / warrant that you are exercising and selling in one go  OR RSUs being sold  or what .  I am  confused because  the TDS is normally a requirement. So tell me more please  ( update my knowledge bank )

 On you main question -- TurboTax asking for 1099-B and not letting you go past this requirement and your  choice  of  "  on this portal    suggests perhaps  you are using the on-line version.  I am not familiar with the screens / Questions of that version .    If I am right  ( please confirm ), I need to get another champ/expert familiar with the on-line version  help you.

BWT -- are you not required to file a return in India for this India sourced income ( per the tax treaty ) ?

Let me know if you are using the on-line product and I will page somebody else 

[akhilsuri194]

As per my knowledge, I am requried to pay income tax on my worldwide income in USA as I am US tax resident and I sold some Indian equity through a broker in India. So in India, I'll get the TDS back(if deducted) and I need to declare the same in my US income and pay taxes here.

Yes I am using online version of turbo tax and it is asking me to upload form 1099-B to file the return if I declare my foreign income. 

[DaveF1006 · Accepted solution]

If you don't have a 1099B, you are unable to upload. you will need to enter the information manually. Here is how to report.

1. Once you are in your tax return, click on the “Federal Taxes” tab ("Personal" tab in TurboTax Home & Business)
2. Next click on “Wages & Income” ("Personal Income" in TurboTax Home & Business)
3. Next click on “I’ll choose what I work on” (jump to full list)
4. Scroll down the screen until to come to the section “Investment Income”
5. Choose “Stocks, Mutual Funds, Bonds, Other” and select “start’ or “update” is you have already worked on this section.
6. The first screen will ask if you sold any investments during the current tax year. Answer “yes” to this question)
7. Since you did not receive a 1099-B, answer “no” to the 1099-B question
8. Choose type of investment you sold - Here you will pick the closest classification that matches the entries in the drop-down.
9. Finish the section reporting the details of your sale. 

If reporting in Turbo Tax online, you will need to report in this manner.

1. Once you begin entering information in this section, it will ask you to import your information. Say that you will enter this a different way.
2. Now instead of selecting stocks and bonds, select other.
3. Next screen enter the broker information.
4. Next you can indicate this is a stock sale and then proceed through the rest of the interview. You will need to report this in this manner since you haven't received a 1099B.

[Edited 02/17/25|2:54 pm PST]

[akhilsuri194]

Looks like these steps are for the Turbotax desktop application. I am not able to see any option to skip 1099-B on website.

[DaveF1006 · Accepted solution]

Yes, I can see where there isn't an option to state that you do not have a 1099B.  Here is how you may enter this information instead.

1. Once you begin entering information in this section, it will ask you to import your information. Say that you will enter this a different way.
2. Now instead of selecting stocks and bonds, select other.
3. Next screen enter the broker information.
4. Next you can indicate this is a stock sale and then proceed through the rest of the interview. You will need to report this in this manner since you haven't received a 1099B

@akhilsuri194 

[pk]

@akhilsuri194 ,  while I agree with my colleague  @DaveF1006  for his answers and suggestions, one sentence in your post caught my eye -- it is tax matter and not  TurboTax product and its behavior.

You said --  " I'll get the TDS back(if deducted ) ........".

There is a nuance missing here. 

(a)   Per Indian Tax laws  ( to the extent I have studied and remember ), and under US-India  tax treaty,  TDS   ( Tax Deducted at Source )  should have been collected  &  transferred  to IT  by your broker.  I am assuming that this has been done.  The adjustment  and/or any refund issued by IT is a secondary  but important issue.  This will be settled when you file your Indian ITR for the   Tax Year 2024/2025..  I do not know   what happens  if you do not file -- ( I know from  personal experience that UK accepts the TDS as final unless you file a return  for adjustment of  withholding ).

)b)  Under the US-India  tax treaty   --( Double  Taxation Prevention  clause  and sometimes confusing application of  the savings clause,  US  ( federal ONLY ) will  give you credit for the  finalized taxes paid to another  contracting country,  But the actual allowable Foreign Tax Credit for the tax year is the lesser of that imposed by the US ( form 1116 computation ) and the actual amount  foreign taxes paid.

Thus the point that you are not going to get back the dollar for dollar taxes  ( TDS  ) paid to India.

Is there anything more one of us  can do for you ?