Tax treatment on foreign dividends derived from company in Cyprus

[angela829]

I have foreign dividend of a company in Cyprus. I understand that foreign dividend is not taxed in Cyprus but how does US tax treats that foreign dividend on Form1116? Hope someone sheds light on this issue.

Thank you.

[DaveF1006]

No. You cannot claim a foreign tax credit because there is no foreign tax paid on this in Cyprus. 

[angela829]

Sorry DaveF1006. I meant how to report the Cyprus foreign dividend which the brokerage exclude on total dividend of their 1099 DIV? The brokerage reports this Cyprus dividend separately in Summary of foreign investment as qualified dividend with zero tax for it is exempted from Cyprus. But I don't know where to report this dividend income on 1040 in US since it is not included in any 1099 DIV?

Appreciate.

[DaveF1006]

You will still report it as a 1099 DIV income in that section. If the program rejects the entry because of a missing FEIN, you can report it here instead.

1. Log into your account
2. Select Wages and income
3. Less Common income
4. Miscellaneous Income, 1099-A, 1099>start
5. Scroll to the bottom of the page to Other Reportable Income
6. Other taxable income, answer yes
7. Then give a brief description of the income and the amount listed..
8.  Here describe it as Foreign Dividend and then the amount.

[angela829]

I got your reply and will try to see it is working. Thanks so much for your input.