Here is a suggested way to determine if TT needs to know the amount of foreign qualified dividends.
1. If the foreign qualified dividends are $20,000 or more, the “adjustment” which means reduction is required so TT will need that info.
2. If the foreign qualified dividends are less than $20,000, the “adjustment is required only if the income exceeds the following:
Check line 5 of the Qualified Dividends and Capital Gains worksheet in the Form 1040 or 1040SR instructions or check line 18 of the Schedule D Tax Worksheet in the Schedule D (Form 1040) instructions.
If the amount in line 5 or line 18 of the respective worksheets is greater than:
a. $326,600 if married filing jointly
b. $163,000 if married filing separately or single or head of household.
It is a good idea to know in advance how you stand and here is why.
During the interview you will come to a screen with the header “No Other Income or Expenses.”
The third line states “You are claiming no adjustments to foreign income.”
By knowing in advance that you do have adjustments then select “NO” and you will eventually reach the screen asking for foreign qualified dividends. If you know that you don’t have any adjustments and the other 2 statements are applicable then you can select YES and the screen asking for foreign qualified dividends will not be seen.
