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Level 2
March 11, 2021
Solved

Nonqualified and Qualified foreign dividends

  • March 11, 2021
  • 4 replies
  • 54 views

The 1099 for a trust shows foreign tax paid. To support this information, the document also includes Nonqualified and Qualified foreign dividends and the total foreign dividends. Which of these three values do I enter for "Foreign Dividends Received"? The help on this topic doesn't help.

Best answer by pk_

@wdhanig  you will need to report  "total foreign dividends  "   and the total foreign taxes paid  for purposes of foreign tax credit.  Note that usually   you do not have  qualified foreign  dividend but if you do , this may have to be broken out  and included along with any capital  gains. Suggest reading through instructions for form 1116 -- it specifically covers  foreign tax credit for trusts/estates.

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4 replies

pk_Level 15Answer
Level 15
March 11, 2021

@wdhanig  you will need to report  "total foreign dividends  "   and the total foreign taxes paid  for purposes of foreign tax credit.  Note that usually   you do not have  qualified foreign  dividend but if you do , this may have to be broken out  and included along with any capital  gains. Suggest reading through instructions for form 1116 -- it specifically covers  foreign tax credit for trusts/estates.

Is there more I can do for you ?

Level 2
March 11, 2021

Thanks! I'll look at form 1116.