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New Member
posted Jun 6, 2019 2:25:28 AM

The directions indicate to select RIC for foreign taxes paid on dividends. Are ETFs considered a RIC?

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1 Best answer
New Member
Jun 6, 2019 2:25:29 AM

In a word, yes.  Most ETFs (Exchange Traded Funds) are registered with the SEC (Securities and Exchange Commission) as investment companies under the Investment Company Act of 1940.  And so, just like traditional open-end mutual funds, that makes them RICs (Registered Investment Companies) for legal and tax purposes.

That much is true of almost all ETFs.  However, different regulations apply to commodity-based ETFs, as well as exchange traded notes (or ETNs, which are sometimes confused with ETFs, but are very different in nature).

Thus, for purposes of making your data entry into TurboTax, if you own an ETF (not an ETN, or a commodity-ETF however), you can safely use the designation RIC for purposes of labeling the dividends for foreign tax credit purposes (and for completing Form 1116, the foreign tax credit form).

Thank you for asking this question.


1 Replies
New Member
Jun 6, 2019 2:25:29 AM

In a word, yes.  Most ETFs (Exchange Traded Funds) are registered with the SEC (Securities and Exchange Commission) as investment companies under the Investment Company Act of 1940.  And so, just like traditional open-end mutual funds, that makes them RICs (Registered Investment Companies) for legal and tax purposes.

That much is true of almost all ETFs.  However, different regulations apply to commodity-based ETFs, as well as exchange traded notes (or ETNs, which are sometimes confused with ETFs, but are very different in nature).

Thus, for purposes of making your data entry into TurboTax, if you own an ETF (not an ETN, or a commodity-ETF however), you can safely use the designation RIC for purposes of labeling the dividends for foreign tax credit purposes (and for completing Form 1116, the foreign tax credit form).

Thank you for asking this question.