When taking the foreign tax credit/deduction, one must calculate the amount of foreign source income. For years, I have followed the instructions to multiply Box 1a by the percent of foreign sourced income as instructed on T. Rowe Price's 1099-DIV instructions (see below).
However, Turbotax interview on the "Tell us about your foreign dividends" dialog is adding Box 1a and Box 2a and saying "Now enter the portion of the the total of 1a + 2a dividends and distributions that was from a foreign country or U.S. possession." That doesn't match the instructions I've read elsewhere.
To calculate your foreign source income and foreign source qualified income,
multiply the amount in Box 1a of your Form 1099-DIV by the “Foreign
source income %” and “Foreign source qualified income %” columns,
respectively.
[Turbotax Deluxe desktop version [phone number removed]]
You'll need to sign in or create an account to connect with an expert.
Well, this is funny. I did another search and found someone has asked the same question last year. Then I realized it was me.
The bottom line is that TT should provide more guidance here. You do not necessarily multiply the number it presents by the % of foreign income. The T. Rowe Price instructions, specific to that 1099-DIV, is correct.
Still have questions?
Questions are answered within a few hours on average.
Post a Question*Must create login to post
Ask questions and learn more about your taxes and finances.
zblack20
New Member
barba19bg
New Member
mjc305w28
Level 1
herb-burnell
New Member
lww
Level 2