I have $10K in total dividends (US and foreign) from my 1099-DIV. Of this amount, $4K is foreign sourced dividends, and of the $4K, about $3K are qualified foreign dividends. And the foreign taxes paid on those foreign dividends is $500.
When I fill in Form 1116 Part 1 line 1a (passive income - dividends), should I be writing $4K foreign gross income (dividends) in Form 1116 Part 1 line 1a, and report $10K total dividends on Schedule B? Or write 0 on Part 1 line 1a and report $10K total dividends on schedule B? Or write $4K foreign dividends in Part 1 line 1a and report $6K US dividends on Schedule B? I'm very confused by my previous tax returns where my CPA put "zero" in Part 1 line 1a of Form 1116 (thus Part 1 line 6 and 7 are all zero) and just reported the foreign tax in Part 2.
This is my first year using TT. Thanks for your help in advance.