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Level 3
posted Mar 14, 2023 11:27:51 AM

Mutual funds with foreign income

Hi, I have a security in a mututal fund that has 99.10% from foreign source income. I know you report the income in box 1a of your 1099-div and also the taxes paid in box 7.
To my knowledge, that is all I do. Is this correct? Since it is such a large percentage I am not sure if anything else applies. I am from CA btw and the security total is showing only about $4,400 in the security total for the 1d- proceeds and 6-reported.

0 1 99
1 Replies
Expert Alumni
Mar 14, 2023 12:21:34 PM

If your foreign taxes paid are less than $300 (filing single) or $600 (filing married-joint) you don't need to do anything else to get a credit for your foreign taxes paid. If your foreign taxes are more than that, you will need to complete form 1116 to get a credit for your foreign taxes, or you can choose to deduct them as an itemized deduction. You can follow these steps to do that in TurboTax:

 

  1. Click on Deductions & Credits on your left menu bar
  2. Choose Estimates and Other Taxes Paid
  3. Choose Foreign Tax Credit and answer the questions in that section