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Foreign Tax Credit on divs

A couple questions on reporting foreign taxes on dividends.

  1. the brokerage acct reports a total foreign tax on the
1099-Div. About 30% is from a stock taxed in UK, the rest mutual funds/ETFs which are taxed all over. Is there any reason not to just use "various" for all? All my foreign tax is passive / dividends.
  1. The 1116 wants to know about foreign income which the tax applies to. Some of the tax is on "global" funds having both US and non-US holdings, but the break out is not provided in any supplemental tax information. How do you determine the foreign source income in this case?
  2. the 1116 wants to know the date tax was paid. If the taxes are paid at various points throughout the year (actually, the pass-though tax is charged at various points throughout the year when fund dividends are declared) what date is used? I can't find any reason why it matters, except for annualized income method of estimated tax. scott s.

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Reply to
scott s.
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First off, is your total total foreign tax withheld:

  • All reported on 1099-INT/DIV
  • Less than 0 (0 if MFJ)

If so, you can dispense with 1116 entirely and report the full amount withheld directly on the foreign income tax credit line of Form 1040.

-- Rich Carreiro snipped-for-privacy@animato.arlington.ma.us

Reply to
Rich Carreiro

Unfortunately it is about $1300 plus about $300 carryforward from a previous year.

scott s.

Reply to
scott s.

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