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If dividend income on Federal Schedule B (or Form 1040) is larger than you expect (and Federal Form 8621 Information Return by a Shareholder of a Passive Foreign Investment Company or Qualified Electing Fund is a part of your return and includes dividend income), follow the steps below to review the Form 8621 entries.  

Dividend amounts are only transferred to Schedule B from Form 8621 if they are entered on the additional lines provided immediately below and to the left of lines 15a and 15e on Form 8621.  No amount entered on the actual lines 15a and 15e are transferred because of the issue of the income then possibly being taxed twice. The text to the left of those lines on your screen explains this.  If the amounts are already reported as income on Form 1040 due to other entries, then no amount should be entered on those lines immediately below and to the left of lines 15a and 15e.  The programming is handled this way as it cannot be certain what income has already been reported on Form 1040.  You would still enter the appropriate amounts on the actual lines 15a and 15e, do not enter the same amount on the lines below and to the left of those lines.

To enter the information to complete Federal Form 8621 Information Return by a Shareholder of a Passive Foreign Investment Company or Qualified Electing Fund, in the TaxAct program, follow the appropriate instructions below.

TaxAct Online Users Forms Method:

  1. Sign in to your TaxAct Online return
  2. Click Tools on the right side of the screen to expand the category, then click Forms Assistant
  3. Expand the Federal Forms folder and then expand the Forms and Schedules folder
  4. Scroll down and select Form 8621 - Return by a Shareholder of a Passive Foreign Investment Company or Qualified Electing Fund
  5. Click Add to create a new copy of the fillable form where the information can be entered or click Form to review a form already created
  6. Enter the information directly on the form

TaxAct Desktop Users Forms Method:

  1. Start your TaxAct Desktop program and click on the Forms icon in the toolbar OR click Return from the drop-down menu bar, place the cursor over Review and then click Forms
  2. Expand the Federal view and then expand the Forms and Schedules view
  3. Scroll down and double click on Form 8621 - Return by a Shareholder of a Passive Foreign Investment Company or Qualified Electing Fund
  4. Enter the information directly on the form

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