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progohan
New Member

For the foreign dividends field, do I need to enter Total Foerign Source Income or just Qualified Dividents. (total is broken in NonQualified and Qualified)

 
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4 Replies

For the foreign dividends field, do I need to enter Total Foerign Source Income or just Qualified Dividents. (total is broken in NonQualified and Qualified)

You should enter the total foreign source income, not just the qualified dividend.

 

The dividend and qualified dividend are treated differently for tax calculations.

The dividend is treated as regular income while the qualified dividends are taxed at long-term capital gains tax.

For the foreign dividends field, do I need to enter Total Foerign Source Income or just Qualified Dividents. (total is broken in NonQualified and Qualified)

My Vanguard brokerage statement does not list foreign income.  It only gives me foreign income percentages, broken out as 

Foreign source income total (23.9%)  Fgn Source Inc Qual (9.22%) and Fgn Source Inc Adj (0.0%).  How do I use these percentages to calculate the amount of foreign income for that particular fund?  The explanation given by TurboTax for that line is crap.

JosephS1
Expert Alumni

For the foreign dividends field, do I need to enter Total Foerign Source Income or just Qualified Dividents. (total is broken in NonQualified and Qualified)

If the individual dividends are not labeled foreign, you can manually calculate based on the percentages given and enter as such.  This is really only necessary if there are foreign taxes withheld and paid.  If not it will not have an effect on the return.  If foreign taxes are reflected, use the percentages given by Vanguard.  It does seem odd as Vanguard is usually one of the more informative brokerage firms that it did not specifically identify the foreign items.  

 

@Daveee 

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For the foreign dividends field, do I need to enter Total Foerign Source Income or just Qualified Dividents. (total is broken in NonQualified and Qualified)

That still begs the question as to which percentage I should use—the total or the qualified?  I tried calculating each against the qualified dividends, unqualified, and total—and didn’t match the total foreign tax paid that Vanguard reported. I ended up just applying the total percentage against total dividends paid, and recorded that as the total foreign income. It didn’t affect my refund, so that’s how I filed my return. Whether I accidentally got it right is immaterial to this question. I’m irritated that TurboTax doesn’t provide a more complete and clear explanation, especially given the exorbitant amount they now charge for their Premier software!

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