Unusual situation: Taxpayer is a British citizen, multi-citizenship status, and has green card for US work. Significant income, and has for several years been paying US/state tax on "worldwide" income. (His employer has previously been preparing all tax returns.) All wage income is reported on a single Form W2, including some "foreign" income that varies based on work schedule and other issues.
Taxpayer owns common stock (not a 401k type account) in a British corporation. Some of the shares are held in a US brokerage firm, and some of the shares are held in a "foreign" account. Form TD F 90-22.1 will be prepared, and US/state taxes will be paid on income within those accounts.
For the quarterly dividends, the client receives 90% of the dividend amount as the UK automatically withholds 10% from such dividends. Other than the currency differences (US $ versus UK £) the same process occurs for both stock accounts.
Now, for the relevant question: On the US Form 1099-DIV, all dividends are shown to be "qualifying" and the 10% foreign tax paid is also noted. For the shares held in the UK account, again - the SAME corporation! - there is obviously no US Form 1099-DIV generated and no "qualifying dividend" information can exist.
So....are the dividends paid from the UK account also "qualifying" dividends, or do only the dividends reported on the US Form 1099-DIV get considered as "qualifying" dividends? FWIW: The required Form 1116 will include the dividends from both accounts.
Nothing like a little late-March brain teaser.....
FE
Taxpayer owns common stock (not a 401k type account) in a British corporation. Some of the shares are held in a US brokerage firm, and some of the shares are held in a "foreign" account. Form TD F 90-22.1 will be prepared, and US/state taxes will be paid on income within those accounts.
For the quarterly dividends, the client receives 90% of the dividend amount as the UK automatically withholds 10% from such dividends. Other than the currency differences (US $ versus UK £) the same process occurs for both stock accounts.
Now, for the relevant question: On the US Form 1099-DIV, all dividends are shown to be "qualifying" and the 10% foreign tax paid is also noted. For the shares held in the UK account, again - the SAME corporation! - there is obviously no US Form 1099-DIV generated and no "qualifying dividend" information can exist.
So....are the dividends paid from the UK account also "qualifying" dividends, or do only the dividends reported on the US Form 1099-DIV get considered as "qualifying" dividends? FWIW: The required Form 1116 will include the dividends from both accounts.
Nothing like a little late-March brain teaser.....
FE
Comment