Question

Form 8621 - Dividend Income

Accepted Answer

If dividend income on Federal Schedule B (Form 1040) Interest and Ordinary Dividends (or Form 1040 U.S. Individual Income Tax Return ) 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 in the TaxAct program:

Online Users Forms Method

Sign in to your TaxAct Online return
Click Tools down the left to expand, then click Forms Assistant.
Click to expand the FEDERAL Forms folder, then click to expand the Forms and Schedules folder.
Click Form 8621 - Return by a Shareholder of a Passive Foreign Investment Company or Qualified Electing Fund.
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.
Enter the information directly on the form.

Desktop Users Forms Method

Start your TaxAct Desktop program and click Forms in the toolbar OR click Return from the drop-down, place the cursor over Review, then click Forms.
Click to expand the Federal folder, then click to expand the Forms and Schedules folder.
Double-click Form 8621 - Return by a Shareholder of a Passive Foreign Investment Company or Qualified Electing Fund.
Enter the information directly on the form.

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.