Report Foreign Dividends Step-by-Step: RIC or other

[paulinus49]

When filling in the information from my 1099-DIV, I reported $267.14 in foreign taxes paid.  Two steps later, I am to report the portion of the dividends and distributions that was from a foreign country.  I have that number, of course, from my 1099-DIV summary.  However, I am required to check whether those foreign dividends are from a Mutual Fund/Regulated Investment Company (RIC) or other.  I cannot choose both.

In my situation, some of the dividends came from RICs (mutual funds) and some came from regular securities.  What should I check?  This might affect how the numbers are reflected on the Form 1116 if i wish to claim the foreign tax credit.

Thank you  in advance.

[DaveF1006]

Yes. It doesn't give you much of a choice when you answer this question. I would suggest selecting RIC since some of the dividends came from RIC.

This isn't a critical component in your return and won't raise a red flag. The amount reported will not  generate a Form 1116 because it is less than the $300 reporting threshold required to be reported on Form 1116. 

If a Form 1116 would have be generated in the return, you would have been able to allocate portions between RIC and the other securities amount but since a Form 1116 is not generated, separating the two amounts is irrelevant. 

[paulinus49]

Thank you for your reply.  I do in fact have more foreign taxes paid, but they were to specific countries from another brokerage account putting me over the $300 limit.  Which, of course, only complicates matters.  If it was only the one account, I agree with your analysis.  My hope is that the TT developers will tweak the program appropriately if enough users complain about confusing steps.  Thanks again.

[DaveF1006]

I noticed in the Foreign Tax Credit section that it mentions to select RIC if any income was received from a mutual fund or other Regulated investment company.  This indicates that a further breakdown is not necessary to be reported on your return. 

[neet]

I have $914.38 in foreign tax paid. There is no place anywhere in my report that shows foreign dividends received. What do I do? TurboTax is not letting go further.

[ThomasM125]

All or a portion of the dividends reported in box 1 on your Form 1099-DIV would likely be the foreign income associated with the foreign taxes reported in box 7. If there is not information included with your Form 1099-DIV that identifies the foreign income, you would have to ask the issuer for it. Also, if you know the dividends are from ownership in a foreign entity, that would be a clue as to how much of them represents foreign income.

@neet 

[sdevani]

I have the same issue but further along in TT it asks for date when dividends were paid- how do I get that info 

Thank you in advance 

[AmyC]

It is asking for the date the foreign taxes were paid or accrued- to make sure it is 2024. You can use 12/31/24 if this is from a brokerage where you don't have exact data - any 2024 date will do. 

If you are actually invested in foreign countries on your own and pay foreign taxes, you would use the date you actually paid the foreign country.

@sdevani