Where do I enter foreign source income (i.e., the amount of mutual fund ordinary dividends from a foreign source) in Turbo Tax? (This is different from foreign tax paid.)

[MarilynG · Accepted solution]

It is somewhat tricky to get to the area to enter your Foreign Source Income.

If your 1099-DIV shows an amount for Foreign Tax Paid, check the box under Box 1b - Qualified Dividends, 'My form has info in more than just these boxes..'. and enter Foreign Tax Paid.

Then in Deductions & Credits, choose Foreign Taxes from the topic listing. 

TurboTax asks if you want to take a Deduction or a Credit, then you come to a screen titled 'Where did you receive the Dividend Income From?' 

You can select RIC for income income received from a mutual fund (screenshot). 

On the next screen, you can indicate that you want to report the Foreign Dividend Income, and link it to your 1099-DIV.

Then you enter the amount of Foreign Source Income (screenshot). 

[beckys]

Thanks! Figured it out.

[swimgirlfun]

I am using turbotax premier. I click on foreign taxes, but can't get to a screen titled "Where did you receive the dividend income from" nothing looks like the screenshots you included here. I need to report oreign div income from a mutual fund of 147.54. I imported my 1099-DIV right from the source, but this value didn't come through.

[Aspen122]

I have the box checked in each of the  four 1099-DIVs that have foreign tax income.

I chose the option for the Credit and chose the 18 applicable countries in the drop down list.

Only one country can be chosen at a time. The four 1099-DIVs (from two brokerage firms) are not listed; only one.

Is there a way to work with the Ordinary Dividend dollar amount and assign countries and amounts to that? A way to provide Total Dividend income for each 1099-DIV and Total Foreign Source Income for that 1099-DIV?.

[DaveF1006]

Yes, you can choose various in the drop-down list and that will summarize the totals for all the countries. It also eliminates the necessity of trying to determine total dividend and foreign source income for each country.

@Aspen122

[nicholasgarcia]

I read your explanation on Foreign Tax Paid on 1099-DIV after I was notified by the IRS for my 2021 taxes that the calculation was incorrect on the Deluxe program.  It seems to have  "linked" the Foreign Income  to Form 1116, even though the program gave no option where to link it.  After reviewing I do not see where it reported it as Foreign Income on the 1040 or Schedule 1.   In accordance with the IRS the Foreign Income was never report on the tax forms!  After amending  2021 taxes I reviewed the  2022 program finding no reporting of Foreign Income, which, means I have to amend the 2022 taxes.  Also, your explication on your website addressed looking at a screenshot, there is no  screenshot. As of to date I do not have any idea where to link or handle  the Foreign Tax except manually to put on the Schedule 1. Please correct this problem with your program or provide clearer means of reporting Foreign Income. 

[Mike9241]

Note my version may be different than yours so this may not work. 

if you can get back to screen where dividend income entered then is there a box that says my form has info in more than just these boxes  - if so check it otherwise ignore this thread

enter foreign tax in box 7 (note if your foreign tax is less than $600 joint return $300 for all other types the form is not required - to force it you would have to get back to your info worksheet and check the box for filing the 1116 even if not required)

now you may need to get the the deduction and credit section of the program and work your way to the foreign taxes section and click the link to update

and click the link to take the credit till you enter the page asking for country - enter it or use various and continue.

until page asking about income from foreign countries  click on report income

the next page should have a listing of the 1099-div for which you entered foreign taxes  - check the select box and then continue

the next page should ask about the amount of foreign source income enter it

from there i would choose the simplied AMT method and complete the pages 

finally you'll come to a page asking about country of residence and date foreign taxes paid - just use the year end date 12/31/202x and check the paid box

you should be done and the link to the 1116 should be automatic. 

[nicholasgarcia]

Thank you for the quick response. However, your explanation does not resolve my problem.  My Foreign Taxes come from a 1099-DIV line 7, as for country it is RIC and is less than $300. I re-ran the program in the Deduction and Credit section as I had done when I initially did my taxes.  After re-running the program I, of course, came up with the same AGI as my initial 1040 sent to the IRS.  IRS does not agree with my AGI to a short fall amount equaling the Foreign Taxes Paid. The IRS letter states the following;  "The computation for line 11 (1040), Adjusted Gross Income (AGI) should include $$$ from line 8 of the 1040 and line 10 of the Schedule 1. "  The $$$ amount is the Foreign Tax Paid amount. In summary, according to the IRS the Foreign Tax amount should have been reported as a separate income!

So, my question is this, is your program, as related, to Foreign Tax Paid in error or is the IRS in error? 

This issue needs to be resolved because I will continue to receive future Foreign Tax Paid in my 1099's and makes me question the accuracy of your program.

Thank you.