Why is Lacerte treating all dividend income as foreign source?

Forum|Forum|5 years ago
April 28, 2021
2 replies
17 views

Friends:

Taxpayer has $10,000 in ordinary dividends, $4,000 in qualified dividends, and $2,000 in capital gain distributions. She has foreign tax paid of $100. Her 1116 is treating ALL of that income as foreign-source. I can't figure out why. Can anyone help?

Micah

Lacerte Tax

This topic has been closed for replies.

Best answer by sjrcpa

In the dividend entry, you need to tell it how much divs, qual divs and cap gians (0 or -1) are foreign. When you don't enter these fields it assumes all of the divs are foreign.

PhoebeRoberts

Intuit Community Champion

At the bottom of the dividend input screen where you put the foreign taxes paid, you need to also enter the foreign source dividends, qualified dividends, and capital gains. If you have multiple dividend entries, verify that any of them linked to the 1116 have the foreign source amounts entered.

sjrcpaAnswer

Level 15

In the dividend entry, you need to tell it how much divs, qual divs and cap gians (0 or -1) are foreign. When you don't enter these fields it assumes all of the divs are foreign.

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