How do I designate a portion of qualified dividend income as ordinary income?

[G14058Tax]

It doesn't work if you have foreign earned income！ I tried this, and it ended up more taxes that I owe, because this ordinary dividends count as US income, you can't offset it with foreign credit. 

I had the same issues with this niit tax due to qualified dividend.  I select portion of it as investment incomes, enough to reduce US portion of income so I don't need to pay niit.  Note, my foreign earned income above threads.  

Chaz

[G14058Tax]

Where did you put the $400 as "bank interest"？ I had the exact issue like yours,  but when I move qualified dividend to interest,  it yield the same result ($10 niit tax). I think it treated as US income,  and foreign earned credit can't offset. 

[joel32]

This bug continues to exist as of now.

[BrittanyS]

As this is an old post, can you clarify what issue you're still having?

[joel32]

Hi Brittany,

Thanks for the prompt response.  The bug I am encountering is the same bug that alexgerber described earlier in this thread.

When total investment interest expense (Form 4952 line 3) exceeds the sum of qualified dividends (Form 4952 line 4b) and net capital gains (Form 4952 line 4e), the software correctly asks the user if they want to "Make a Capital Gain Election" (for the purposes of the software filling in Form 4952 line 4g).

However, when total investment interest expense (Form 4952 line 3) is less than the sum of qualified dividends (Form 4952 line 4b) and net capital gains (Form 4952 line 4e), the software incorrectly avoids asking the user if they want to "Make a Capital Gain Election" (for the purposes of the software filling in Form 4952 line 4g).  I believe in this scenario (which is my scenario) the software should still ask the user if they want to Make a Capital Gain Election (to allow for making an election up to the amount that would allow them to deduct their investment interest expense rather forcing it to be carried over to next year).

Joel