Nonqualified and Qualified foreign dividends

[wdhanig]

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.

[pk · Accepted solution]

@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 ?

[whanig]

Thanks! I'll look at form 1116.

[GailFindlay]

Helpful but I have both qualified and nonqualified foreign dividends.  Where do I enter qualified foreign dividends amount?

[MarilynG1]

If you're claiming the Foreign Tax Credit, use the amount of Foreign Qualified Dividends as income to claim the credit, which includes both qualified and non-qualified.  For a mutual fund with multiple countries, use 'RIC' as the country in this section.

When you enter your 1099-DIV, your non-qualified dividends are broken separately out for US tax purposes.

Here's more detailed info on Dividends and Taxes.

@GailFindlay