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1099-div

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A client opened a new Vanguard brokerage account.  I entered all info from 1099-DIV which included foreign tax paid.  On a separate sheet at the end of his packet there is:

Foreign income of 288.12 and QDI eligible foreign income of 214.89.

Do these two numbers get entered in ProSeries Professional or do I ignore them?

Thank you. 

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Employee
Employee

If your client is not required to file Form 1116 (under the $300/$600 limit, all foreign tax on 1099s/k1s, etc.), then you don't need this information. You can enter the foreign tax paid directly on the Form 1040 Wksht.

If your client is required to complete Form 1116, they might be required to make adjustments related to foreign QDI income. If this is the case, Proseries will alert you with errors on line g1h in Part I of the Foreign Tax Credit Computation Worksheet. This is where you'll enter the QDI income from this statement if necessary.

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Highlighted
Employee
Employee

If your client is not required to file Form 1116 (under the $300/$600 limit, all foreign tax on 1099s/k1s, etc.), then you don't need this information. You can enter the foreign tax paid directly on the Form 1040 Wksht.

If your client is required to complete Form 1116, they might be required to make adjustments related to foreign QDI income. If this is the case, Proseries will alert you with errors on line g1h in Part I of the Foreign Tax Credit Computation Worksheet. This is where you'll enter the QDI income from this statement if necessary.

View solution in original post

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