IRS Form 1099-DIV with Foreign Taxes Paid - Foreign Tax Credit Form 1116

For other videos on the Foreign Tax Credit and Form 1116:
How to file Schedule B of Form 1116: • How to Fill in Schedul...
Adjustments for Qualified Dividends: • How to File Form 1116 ...
How to file Form 1116: • How to File IRS Form 1...
Form 1116 and Form 1099-DIV: • IRS Form 1099-DIV with...
Form 1116 with Foreign Compensation: • How to File IRS Form 1...
For more videos on claiming foreign tax credits on Form 1116:
• International Tax Form...
Form 1099-DIV is generally filed to report dividends and other distributions. Generally, most taxpayers will receive a Form 1099-DIV with only boxes 1 & 2 completed for ordinary and qualified dividend income.
However, if the shareholder is invested in RICs or REIT investments, they may find other fields completed on Form 1099-DIV. Foreign taxes paid on Form 1099-DIV represent foreign taxes paid on foreign source dividend income.
U.S. taxpayers are required to report all income (foreign & U.S. sourced). Taxpayers may be eligible for a foreign tax credit against the net foreign source taxable income.
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#Form1099 #DividendInvesting #Form1116 #ForeignTaxes

[@RalphPitz]

why is the amount in Box 2a of the 1099-Div ignored in the calculation of foreign source income ?

[@timb6985]

Sooo useful!!! Jason, I do have one question... On several of my brokerage forms I see two percentages for Fgn Source Income- 1) Fgn Source Inc Tot and 2) Fgn Source Inc Qual. Based on your video, I would assume you use #1 (the "total" percentage, which is the larger of the 2), but Schwab site has a worksheet calculator, and they seem to use the Smaller Percentage (Foreign Qualified Dividend income). Which percentage do you use?

[@tonchua6353]

Thank you for your very informative video. I have further question on my case. I am receiving distribution from my Canadian Registered Retirement Fund. Is this foreign income classify under passive category?

[@the11diesel-id1zo]

Very helpful video! I scoured the internet looking for exactly this! Thank you, thank you, thank you!!!!

[@sharad5733]

Thanks for such a clear explanation.

[@jmbuchela5424]

This is one the very best on explaining form 1116, the work sheet for line 18 could use some help. ( how to determine tax percentage on gains and qualified dividends )

[@nileshbavishi111]

I think in work sheet for line 18 , we have to put our qualified dividend according to the taxable bracket income, mostly it would be in 15% , then multiply accordingly and if it in 0 % directly put that amount.

[@guyhurley9417]

My 2022 Foreign Tax Credit (from Vanguard mutual fund 1099-DIV) came to exactly $301.00. I put that in my Schedule 3. The IRS sent a letter saying I'd have to fill out an 1116 Form. Is the $300+ gross amount an absolute trigger, or could I file a new Schedule 3 with $300 and forego any potential cary-over? It sure is a lot of work for the extra $1.00!

[@markmyjak7739]

@guyhurley: I believe $301 is the threshold to trigger IRS form 1116. I've received foreign dividends in the past but never had to file a 1116 form. My foreign investments take their 25% tax out of my dividends. I believe that for tax year 2023, I will be filing my first 1116. I received about a $700 in foreign dividends.

[@guyhurley9417]

To add insult to injury, the 1116 form resulted in my being able to claim only $160 in Foreign Tax credit. That extra $1 cost me $140!@@markmyjak7739

[@eac26114653]

Very good line by line video. Makes Form 1116 understandable.

[@safdarmemon7577]

How to contact Jason as I have emailed him multiple times , called him and even texted him on Quora. I am stuck in a problem of disregarded entity which is really hampering my business on Amazon