Foreign Tax Credit

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GuyInFL
Posts: 865
Joined: Thu Aug 04, 2016 7:17 pm

Foreign Tax Credit

Post by GuyInFL »

I'm helping a relative with their taxes and have a Vanguard 1099-DIV reporting

8- Foreign country or US possession: See detail 7- Foreign tax paid: 350.00

FreeTaxUSA is asking how much Foreign Income is associated with this so that I can take the Foreign Tax Credit.
How do I determine this?
In the details of the 1099-DIV, United States is listed as the Foreign Country and various percentages are listed for the following funds.

In the details section...
VNGRD TOTAL INTL STK ETF / VXUS
- FOREIGN SOURCE INCOME PERCENTAGES
- Fgn Source Inc Tot 100.00% Fgn Source Inc Qual 73.63% Fgn Source Inc Adj 0.00%
VNGRD TTL BD MKT ETF / BND
VNGRD INT TM INV GD ADML / VFIDX
VNGRD S/TRM INVT GR ADML / VFSUX
VNGRD EXTND MARKET ETF / VXF
VNGRD GROWTH ETF / VUG
VNGRD VALUE ETF / VTV
VNGRD TTL STK MKT ETF / VTI

There are various percentages associated with each fund as shown as VXUS above. How calculate the Foreign income?
Last edited by GuyInFL on Tue Mar 28, 2023 11:32 pm, edited 1 time in total.
nalor511
Posts: 5058
Joined: Mon Jul 27, 2015 1:00 am

Re: Foreign Tax Credit

Post by nalor511 »

Amount times percentage.
w5000
Posts: 302
Joined: Mon Feb 10, 2020 8:33 pm

Re: Foreign Tax Credit

Post by w5000 »

Yeah, I thought it was annoying that Vanguard doesn't compute the amounts for you on the 1099. Fidelity does.
Topic Author
GuyInFL
Posts: 865
Joined: Thu Aug 04, 2016 7:17 pm

Re: Foreign Tax Credit

Post by GuyInFL »

I went back and read the wiki to get a better understanding of this.
https://www.bogleheads.org/wiki/Foreign_tax_credit

After that, I reviewed the details of the 1099 and saw Vanguard broke out the income and foreign tax paid. The only one showing foreign income was VXUS, and the link in the wiki to Vanguard showed the income was 100% foreign for this form, so that gave me the number I need to plug into the tax software.

Thanks for the comments!
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