Hi, in my federal review, I am running into the following question. How would I go about answering it?
"Form 1116 (COPY 1) -- Foreign Tax Credit Comp Wks: Qual Div and LT Cap Gains should have a value of at least $X based on the 1099-DIV worksheets that are linked to this country."
In my 1099-DIV from Vanguard, I see a "Detail for Dividends and Distributions" sheet that lists various amounts of Qualified dividends throughout the year for the VTIAX fund (also lists Foreign Tax withheld for that fund). I also see various Qualified dividends for the VTSAX fund but that fund did not have any Foreign Tax withheld.
In my 1099-B from Betterment, I see various transactions that have a Foreign Country = Various and some of those transactions have a >0 Qualified Dividend.
In order to get the amount to fill out the "Qual Div and LT Cap Gains" row, should I just add up the Qualified Dividends from the Vanguard 1099-DIV for the VTIAX fund and from the various transactions in the Betterment 1099-B? This does exceed the X value that TurboTax mentioned in the question by ~700 dollars.
Or do I just take the total numbers from Box 1b (Qualified Dividends) of the 1099-DIV for both Vanguard and Betterment (these are higher amounts)?
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Yes, you can add the dividend amounts from your supplemental info to get a Foreign Income amount associated with the foreign tax amount you previously entered.
You can use Country 'RIC' for the country for the 1099-Div Foreign Income total.
Here's more detailed info on Claiming the Foreign Tax Credit.
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