For some of my international investments, I have:
- Qualified Dividends
- Foreign Tax paid - Various
- Long Term Cap Gains
For my Ameriprise acct, it has total of Total Dividends and Distributions (which includes the Cap Gains), and then Total Foreign Tax Paid.
1) On TT, should I include the LT Cap Gains under the Dividends section for the foreign dividends?
2) I also see there is a percentage for the foreign source income. Should I use that percentage to calculate the actual foreign dividends?
Thanks.
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you really need to know the amount of dividends (including capital gains) on which foreign taxes were withheld.
for example you might have gotten dividends from country A on which taxes were withheld and also dividends from country B on which there were no taxes withheld. Only Country A's dividends (which may or may not include capital gains) would go on the FTC form. The problem with many brokers and especially Regulated Investment Companies (RIC), which include Mutual Funds, ETFs, REITs, etc is that they only report the FTC and not the amount of income to report on the 1116. Only your broker can provide more info. For example, I had foreign taxes withheld on an international bond fund's dividends. the broker only reported the FTC. When I contacted them about the amount of income, they eventually got back and gave me a % to use.
Thanks for your prompt reply.
I do know the amount of Foreign Tax paid. I have a listing for each quarter it was paid.
Then I have the subtotal: Total Dividends & Distributions, along with Total Foreign Tax withheld (which is the Foreign Tax paid).
Example: (hypothetical for Investment A, which is a global fund)
Qtr 1: 10.00 Qualified Dividend
2.00 Foreign Tax Pd
Qtr 2: 10.00 Qualified Dividend
2.00 Foreign Tax Pd
Qtr 3: 10.00 Qualified Dividend
2.00 Foreign Tax Pd
50.00 LT Cap Gain
Qtr 4: 10.00 Qualified Dividend
2.00 Foreign Tax Pd
subtot: 90.00 Total Dividends and Distributions
subtot: 8.00 Total Foreign Tax Paid
Then I go to another page of the report and it says:
Foreign Source Income Percentages: 60%
So the question is: What should I enter on TT when it says to enter Foreign Dividends?
1. Should I just take the $90.00 (which includes Cap Gains)
2. OR take $40.00 (which is just the Dividends without the Cap Gains)
3. OR take a percentage (60% of the $90.00 (which includes the Cap Gain and Dividends)
4. OR take a percentage (60% of the 40.00 (which is just the dividends from this foreign RIC)
Thanks in advance.
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