Foreign dividend income (1040)

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If you have a 1099-DIV, see Form 1099-DIV data entry.

Otherwise, to enter data for foreign taxes paid on foreign dividend income and report it on Schedule B:

  1. Go to the Income folder.
  2. Click the B&D or Broker tab. Only use the Broker screen if you want to enter a consolidated 1099.
  3. Open the the Dividend income statement and complete these fields:
    • F/S:If the dividend income is federal-only or state-only, code it as federal or state. If the dividend income should be reported on both federal and state, leave this field blank. If there are multiple states on the return, see Entering interest and dividend income for a multi-state return.
    • TSJ: Code the dividend income to the Taxpayer, the Spouse, or as Joint. This field does not exist if you come from the Broker screen because the entire Broker screen is coded to the Taxpayer, Spouse, or Joint and the Dividend income statement automatically picks up the code from there.
    • Type Code: Leave blank.
    • Payer name: Enter the payer name.
    • Ordinary Dividend: Enter ordinary dividend amounts from Form 1099-DIV, foreign or not. Do not enter tax-exempt dividends in this field.
    • Qualified Dividend: Enter qualified dividend amounts from Form 1099-DIV, foreign or not. Do not enter tax-exempt dividends in this field.
    • Total Cap Gain: Enter total capital gain distribution amounts from Form 1099-DIV or similar statements, foreign or not.
    • Foreign Ord Div: Enter the amount of foreign ordinary dividends. If the foreign amount is the same as the Ordinary Dividend amount, you can skip this field and mark the X if Foreign field. If you don't see this field, click the globe show foreign columns icon.
    • Foreign Qual Div: Enter the amount of foreign qualified dividends. If the foreign amount is the same as the >Qualified Dividend amount, you can skip this field and mark the X if Foreign field.
    • Foreign Cap Gain: Enter the amount of foreign capital gains. If the foreign amount is the same as the Total Cap Gain amount, you can skip this field and mark the X if Foreign field.
    • Foreign Tax Paid: Enter the amount of foreign taxes paid on foreign source income to calculate Form 1116.
    • X if Foreign: Mark this field to indicate there is foreign source income in this line. If you mark this, UltraTax CS uses the Foreign Tax Paid amount and the Foreign Ord Div, Foreign Qual Div, or Foreign Cap Gain amounts to calculate Form 1116. If you did not enter an amount in those fields, UltraTax CS uses the Ordinary Dividends, Qualified Dividends, or Total Gap Gains amount.
    • FATCA: Enter X if the FATCA checkbox is marked in the source document. There may be additional filing requirements for Form 8938 and/or FinCEN Form 114. Review the filing instructions for more information.
  4. For fields that were skipped during these steps, fill them in as needed for your client or to get your desired result on Schedule B.
  5. Go to the Credits folder and click the 1116 screen to complete any additional data entry you need to get your desired result on Form 1116. See the Form 1116 section below.

Nominee amount adjustments

If you need to make an adjustment for nominee amounts, do not manually adjust the total dividend amount. Instead:

  1. Create a second line in the Dividend income statement.
  2. Enter code 3 in the Type code field.
  3. Enter the adjustment as a positive amount in the same column that you entered the total dividend income in.

UltraTax CS calculates a subtotal of items with type code 3 and subtracts the nominee amount on Schedule B.

Form 1116

When you complete the Dividend income statement as described above, portions of the 1116 screen in the Credits folder will fill out.

Automatically completed Screen 1116 fields Form 1116
Description Passive Income from B&D
Category of Income Passive Income
Description of income for line 1a Dividends & Interest
Country code/name or Mutual fund or other regulated investment company (RIC) income Field data
Foreign gross income Total taxable dividend income
Foreign long-term cap gain/loss Capital Gain/Loss Worksheets
Foreign qualified dividends Total taxable dividend income
Date paid or accrued 1099 Tax

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