1

How can I distinguish ordinary dividends from qualified dividends for when reporting amounts related to foreign financial assets (= hold in non-US brokerage accounts) on the Turbotax website when filing US taxes?

I don't see the option:

enter image description here

In response to comments/answers:

Improve this question
7
  • The question to ask is "Are there any Qualified Dividends from foreign assets?" to which I suspect the answer is No; Qualified Dividends are a subset of dividends paid by US corporations, and foreign dividends cannot be Qualified Dividends. Now, if those foreign assets are investments in domestic corporations, that's a different matter.
    – Dilip Sarwate
    Commented Mar 23, 2019 at 14:02
  • @DilipSarwate A fair amount of non-US corporations have qualified dividends e.g. see How to efficiently know which portion of the dividends are qualified dividends in a French brokerage account, from the United States' IRS standpoint?
    – Franck Dernoncourt
    Commented Mar 23, 2019 at 18:12
  • @DilipSarwate Instructions for 1099DIV say "If the foreign corporation does not meet either (1) or (2) above, then it may be treated as a qualified foreign corporation for any dividend paid by the corporation if the stock associated with the dividend paid is readily tradable on an established securities market in the United States." That changed with JGTRRA 2003 it seems.
    – T. M.
    Commented Mar 23, 2019 at 18:56
  • Ok, I didn't see that link was to a question of yours. This is a French brokerage account? I think that changes things and is a detail that may change the answers here. At this point I think you have enough chances for substantial error that it would be worth hiring professional help that has experience with foreign accounts.
    – T. M.
    Commented Mar 23, 2019 at 19:02
  • @T.M. Why would the fact that it is a French brokerage account differ from is it were a non-US, non-French brokerage account?
    – Franck Dernoncourt
    Commented Mar 23, 2019 at 19:25

2 Answers 2

Reset to default
1

I'll add a caveat to my answer that it wasn't clear before that this was from a foreign account. Various things such as citizenship, tax residence, etc could further affect the situation.

This appears to have the answer. https://ttlc.intuit.com/questions/3308138-how-do-i-report-foreign-dividends Basically enter a 1099-div manually and choose I’ll enter it myself and put the amounts in box 1a and 1b

Improve this answer
4
  • Do I have to report dividends on both "Amounts Related to Foreign Financial Assets" and 1099-div? I'm afraid that it will count twice. I use the Turbotax website and tried Googling the question. What other information do you need? In the link you mentioned, I'm not sure whether "foreign dividends" refer to foreign corporation held in US brokerage account or a non-US brokerage account.
    – Franck Dernoncourt
    Commented Mar 23, 2019 at 18:27
  • In the note there it states that you should also report in the appropriate income area on Turbotax. Also, make sure your account qualifies for what they are looking for there by clicking on their link "foreign financial assets". If it doesn't meet the definition there you wouldn't enter it here. What type of account is it? An account held at a US financial institution or a foreign account? Ok, if you did research that's fine, it's just best to demonstrate that by showing what research you did.
    – T. M.
    Commented Mar 23, 2019 at 18:39
  • Good point: do you think 1099-div is the appropriate income area that I should report the the dividends from non-US brokerage accounts?
    – Franck Dernoncourt
    Commented Mar 23, 2019 at 19:26
  • I don't know, but I believe it is. The 1099DIV instructions should be clear enough on that part at least.
    – T. M.
    Commented Mar 23, 2019 at 19:29
0

Once has to fill a Form 1099-DIV for dividends earnt for each brokerage accounts located outside the United States. The Form 1099-DIV allows to distinguish ordinary dividends from qualified dividends, and is also used for reporting dividends for brokerage accounts located inside the United States.

https://ttlc.intuit.com/questions/3181561-how-to-report-dividends-from-a-foreign-brokerage-account-when-there-is-no-1099-div gives some interesting information (mirror):

Question: Do I report the dividends on the "Dividends on 1099-DIV" section? I looked at this section but it asks for the boxes on the 1099-DIV which I don't have.

Answer: Yes - please use the data entry as if you received Form 1099-DIV

Question: As for converting EUR to USD: Should I convert the amounts using the exchange rate at the date I received the dividend or the exchange rate at the end of the year?

Answer: Use the exchange rate when you receive the dividend (or for foreign tax paid, if any, use the rate when you pay/accrue the tax)

Question: As for converting EUR to USD: What service should I use to get the exchange rate?

Answer: please use the following link; scroll down...it lists government sources as well as outside sources for exchange rates:

(Questions by Mike, anwsers by "TurboTaxMargaretL, Enrolled Agent")

Improve this answer

You must log in to answer this question.

Not the answer you're looking for? Browse other questions tagged .