Hi,
Would like to know how much VTIVX (Target Retirement 2045) I can own without exceeding the $600 foreign tax credit ? We are Married Filing Jointly. Not sure how to go about using the worksheet at https://advisors.vanguard.com/iwe/pdf/t ... 012022.pdf to do the calculation
Thanks
How much VTIVX before exceeding $600 foreign tax credit (MFJ)
Re: How much VTIVX before exceeding $600 foreign tax credit (MFJ)
Hi, Bumping up to see if anyone knows how to calculate. I saw a calculation done in 2017 for a different fund here viewtopic.php?t=234311 . But don't know how to apply the latest FTC worksheet for VTIVX
Re: How much VTIVX before exceeding $600 foreign tax credit (MFJ)
The worksheet says that the foreign tax paid was 3.30% of the dividend, so a dividend of $18,181 would have foreign tax of $600. With the SEC yield of the fund at 2.11%, you would need about $840K in the fund to get that large a dividend.
(I'm not sure whether the short-term capital gain the fund distributed this year is included in the dividend computation, but it wouldn't make much difference; that gain was 0.3% of the fund value. Most of this year's gain is long-term.)
(I'm not sure whether the short-term capital gain the fund distributed this year is included in the dividend computation, but it wouldn't make much difference; that gain was 0.3% of the fund value. Most of this year's gain is long-term.)