Foreign Income and Taxes

[chrob61]

I am confused.   On my 1099 that I received from my investments, there is supplemental information on Foreign Income and Taxes.   It shows non-qualified and qualified dividends and foreign tax paid.  The total income is about $431 and the tax paid is about $20.   I thought I could report this under a 1099-int or 1099-div, but there's no box for "non-qualified" dividends and no space for foreign tax paid.    So, should I report this and if so, where?

[AnnetteB6]

You report it under Dividend Income.  When you first go to the dividend income section, there will be a check box to indicate that your form has info in other boxes.  When you check this box, the screen will expand so that you can include the non-qualified dividends as well as the foreign tax paid.  

See the following picture as a guide.

[chrob61]

Thank you!  Only thing is, I put the "Non Qualified" dividend under box 1 for total, since I didn't see a box for "Non Qualified".

[KathrynG3]

It is best for you to match it the way you received the dividend. The IRS gets a copy, too.

• To change the dividend so it matches Form 1099-DIV that was received, follow these steps:
  • From the left menu, select Federal>
  • Wages & Income>
  • Scroll down to Dividends on 1099-DIV and click Edit/Add
  • Change TurboTax to match your 1099-DIV
     
• If you have already e-filed, you may need to amend. If you do, here are the steps: How do I amend 2019?

[pmezawong]

Hi KathrynG3,

I have qualified dividends from "Foreign Income and Taxes Summary" form. I wanted to follow your steps below but I don't see how I can Change TurboTax to match my 1099-DIV. However, the summary form I got is not part of a 1099-DIV. It just says "Foreign Income and Taxes Summary". Do I need to report this?

[KathrynG3 · Accepted solution]

Probably if there were foreign taxes paid. 

First, report it on the form as received. Note that when entering Form 1099-DIV, you will need to check the box for "my form has info in other boxes (this is uncommon)" in order to report Box 7, Foreign Tax Paid.

Second, utilize the Jump to link described here: Where do I enter the foreign tax credit (Form 1116) or deduction for 2019?

@pmezawong

[Ghmcclain]

I have foreign income on a K-1 form for a trust. Where do I report it?

[LinaJ2020]

Here are steps to enter a K-1:

In TurboTax online,

• Sign into your tax return, select Pick up where you left off
• To the right upper corner, in the search box, type in "k1" and Enter
• Select Jump to k1
• Follow prompts to enter info in different boxes

If you have also paid taxes on this foreign income to both US and foreign government, the IRS allows you to claim a foreign tax credit on your US tax return.  To claim this foreign tax credit, you would need to file a Form 1116 Foreign Tax Credit.  The amount would be shown on Schedule 3 line 1 and line 20 on Form 1040.  

To enter info and file a Form 1116, follow here:

In TurboTax online,

• At the right upper corner, in the search box, type in "foreign tax credit" and Enter
• Select Jump to foreign tax credit
• Follow prompts