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To report foreign dividend or interest income, enter the information as though you had received a Form 1099-DIV Dividends and Distributions or Form 1099-INT Interest Income, 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 (Form 1040) Interest and Ordinary Dividends of the return.

Note. 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 Federal. On smaller devices, click in the upper left-hand corner, then click Federal.
  2. Click Investment Income in the Federal Quick Q&A Topics menu to expand, then click Dividend income (Form 1099-DIV).
  3. Click + Add Form 1099-DIV to create a new copy of the form or click Edit to review a form already created.
  4. Click Quick Entry to scroll down to answer all applicable questions or click Step-by-Step Guidance to proceed with the program interview questions.
  5. On the screen titled Dividend Income - Payer's Name, leave Payer's ID number blank and click Continue.
  6. If you paid foreign income taxes, then on the screen titled Dividend Income - Foreign Tax Paid, enter this information, then click Continue.

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 Federal. On smaller devices, click in the upper left-hand corner, then click Federal.
  2. Click Investment Income in the Federal Quick Q&A Topics menu to expand, then click Interest income (Form 1099-INT).
  3. Click + Add Form 1099-INT to create a new copy of the form or click Edit to review a form already created.
  4. Click Quick Entry to scroll down to answer all applicable questions or click Step-by-Step Guidance to proceed with the program interview questions.
  5. On the screen titled Interest Income - Payer's Name, leave Payer's ID number blank and click Continue.
  6. If you paid foreign income taxes, then on the screen titled Interest Income - Investment Expenses and Foreign Taxes, enter that information, then click Continue.

Form 1116

To review or modify Form 1116 Foreign Tax Credit due to the foreign dividend and/or income tax entries:

  1. From within your TaxAct return (Online or Desktop), click Federal. On smaller devices, click in the upper left-hand corner, then click Federal.
  2. Click Other Credits in the Federal Quick Q&A Topics menu to expand, then click Foreign tax credit.
  3. Click Review on the "Manual Input Worksheet" row to review the worksheet which was created based on the entries made previously.

Note that any link in the information above is updated each year automatically and will take you to the most recent version of the document at the time it is accessed.


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