Foreign dividend taxed in two non-us countries, how to split it?

[Guille12]

Hi,

I have a foreign broker where I have got some dividend income from foreign stocks (foreign to the country of the broker as well). The dividends have been taxed twice, one in the country of the stock and again in the broker country. 

For example my broker is in Spain, and I have German stocks that gave $100 in dividends. Those have been taxed in Germany to 20%, the remaining $80 have been taxed again in Spain at 15%, so I got $68.

Any idea on how I could split that income/tax so I can report it in the 1040 dividend section and in the form 1116 to claim the foreign tax credit?

I know that I need to manually add different 1099-div forms, one for each country, so I can later complete the from 1116 and report the tax paid in each country as well The issue is that the income has been taxed twice in two countries, so I don't k know how to split it.

Thanks.

[LoganathanB]

You can put it as foreign taxes paid to various for the whole amount.

[Guille12]

That is what I thought. But then IRS won’t know which country taxes were paid on and I am not sure if that might have an effect on the credit depending on specific agreements with each country. I guess not because I think the credit  is only based on the US income parameters. But in that case what if the taxes were paid in country where there is no agreement to avoid double taxation?

[RobertB4444]

In that case it is the responsibility of your broker to report them properly.  You should just report the taxes paid as 'various' and call it a day.