I have earned interest and dividend income in Income, on both I have paid taxes in India do I need to show them in my US Returns again and pay taxes ? If yes than which Line item or schedule would it reflect ? Kindly guide
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Should one assume that are US person ( citizen/ Green Card / Resident for tax purposes ) ? If yes, then since you are taxed on world income, you will need to recognize both the interest and the dividend incomes just as if these were in the USA and that these were reported on 1099-INT and DIV. The only difference is that whereas US dividends may also be qualified ( i.e. tax advantaged ), foreign dividends are almost always Ordinary.
May I suggest that since you did not get a 1099-INT and/or 1099-DIV , you fill in these boxes on a copy of the forms ( 1099-INT , 1099-DIV) with the info that you have from foreign / Indian investments and keep these for your records. You tell TurboTax that you have Interest and/or dividend income to report and that you do not have the requisite forms --- it will then allow you to enter the data from the earlier referred "hand prepared" in-formation sheets.
As far as taxes paid to India, the easiest ( and if the total taxes paid is within the "safe harbor" limits), way is to tell TurboTax that you have foreign taxes to report and that you want to take credit for these amounts, and it will guide you to take the safe harbor path -- it is a US$ 300 per filer i.e. for a Married Filing Joint filer the safe harbor amount is US$600. This means that up to and including $600 of foreign taxes can be credited against your tax liabilities without going through the whole process of allowable credit limitation ( based on a ratio of foreign income to world income. It is easy to do.
Is there more I can do for you ?
pk
Should one assume that are US person ( citizen/ Green Card / Resident for tax purposes ) ? If yes, then since you are taxed on world income, you will need to recognize both the interest and the dividend incomes just as if these were in the USA and that these were reported on 1099-INT and DIV. The only difference is that whereas US dividends may also be qualified ( i.e. tax advantaged ), foreign dividends are almost always Ordinary.
May I suggest that since you did not get a 1099-INT and/or 1099-DIV , you fill in these boxes on a copy of the forms ( 1099-INT , 1099-DIV) with the info that you have from foreign / Indian investments and keep these for your records. You tell TurboTax that you have Interest and/or dividend income to report and that you do not have the requisite forms --- it will then allow you to enter the data from the earlier referred "hand prepared" in-formation sheets.
As far as taxes paid to India, the easiest ( and if the total taxes paid is within the "safe harbor" limits), way is to tell TurboTax that you have foreign taxes to report and that you want to take credit for these amounts, and it will guide you to take the safe harbor path -- it is a US$ 300 per filer i.e. for a Married Filing Joint filer the safe harbor amount is US$600. This means that up to and including $600 of foreign taxes can be credited against your tax liabilities without going through the whole process of allowable credit limitation ( based on a ratio of foreign income to world income. It is easy to do.
Is there more I can do for you ?
pk
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