form 8621 for foreign interest/dividend

[cathiexu]

Hi, 

I held several foreign mutual funds in tax year 2022 in my foreign bank account. The mutual funds were acquired in 2021, there was no sale in 2022, but a little bit dividend payment in 2022.  Over the whole holding period, the total worth of mutual funds is about ~6k USD. 

How should I report this foreign dividend in turbotax CD version? Should I file form 8621?

Thanks!

[DaveF1006]

Yes, this is how to report:

1. Open Turbo Tax
2. Go to federal taxes>wages and income>interest and dividends
3. Dividends on 1099 DIV
4. As you navigate through this section, you will report this where it asks to report the income. You would report this just as if you are reporting this on a 1099 DIV.

Yes, you would need to report this dividend  payment if you are a  U.S. person that is a direct or indirect shareholder of a passive foreign investment company (PFIC). You will report If you:

• Receive certain direct or indirect distributions from a PFIC. This includes a dividend.
• Recognize a gain on a direct or indirect disposition of PFIC stock.
• Are reporting information with respect to a QEF or section 1296 mark-to-market election.
• Are making an election reportable in Part II of the form.
• Are required to file an annual report pursuant to section 1298(f).

Please read these IRS instructions for further details. Note if you need to file 8621, Turbo Tax does not support his file. You will need to print and mail this along with your tax return because you won't be able to electronically file this return.  Here is a link to download a 8621.