To report foreign dividend or interest income, enter the information as though you had received a Form 1099-DIV or INT, but leave off the Payer's Federal Identification Number. This number is not required and the return will still electronically file without the number. The information required by the IRS is then transferred to Schedule B of the return.

Note that if the income is reported to you in foreign currency figures you would use the exchange rate on the last day of the year when converting the foreign figures.

Dividends: To enter Form 1099-DIV Dividend Income into the program when it is to report foreign dividends and an ID number is not available

  1. From within your TaxACT return (Online or Desktop), click on the Federal Q&A tab
  2. Click Investment Income to expand that category and then click Dividend Income (Form 1099-DIV)
  3. Click Add to create a 1099-DIV or click Review to review one already created
  4. Click Quick Entry or Step-by-Step Guidance to enter or review the information.
    1. If you select Quick Entry to enter the information directly on the supporting form, be sure to scroll down to answer all applicable questions.  When done entering the information, click the Red X in the top right corner of the form to save the information and close the form.
    2. If you select Step-by-Step Guidance, the program will proceed with the interview questions for you to enter or review the appropriate information. On the screen titled Dividend Income - Payer's Name, leave blank the field for Payer's identification number. Click Continue to enter the other information regarding the foreign dividend income

If you paid foreign income taxes continue to the screen titled Dividend Income - Foreign Tax Paid to enter this information into the 1099-DIV section. 

Interest: To enter Form 1099-INT Interest Income into the program when it is to report foreign interest and an ID number is not available:

  1. From within your TaxACT return (Online or Desktop) click on the Federal Q&A tab
  2. Click Investment Income to expand the category and then click Interest Income (Form 1099-INT)
  3. Click Add to create a new copy of the form or click Review to review a form already created
  4. Click Quick Entry or Step-by-Step Guidance to enter or review the information.
    1. If you select Quick Entry to enter the information directly on the supporting form, be sure to scroll down to answer all applicable questions.  When done entering the information, click the Red X in the top right corner of the form to save the information and close the form.
    2. If you select Step-by-Step Guidance, the program will proceed with the interview questions for you to enter or review the appropriate information. On the screen titled Interest Income - Payer's Name, leave the field for Payer's identification number blank. Click Continue to enter the other information regarding the foreign interest income

If you paid foreign income taxes, continue to the screen titled Interest Income - Investment Expenses and Foreign Taxes to enter that information. 

If you enter foreign taxes paid on either of these forms, the TaxACT program will automatically create a Form 1116 worksheet. You can review this information by following these navigation steps:

  1. Click on the Federal Q&A tab
  2. Click Other Credits to expand the category and then click Foreign tax credit
  3. Click Created Input to review the worksheet which was created based on the entries made above

 


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