r2i forum

Friends,

I am USC living in India and have invested in Indian stock market. When I am filing US taxes, I need to declare the dividends received from these firms. Since, we do not receive 1099-Div , I am trying to enter this info as if I received 1099-Div. My questions are:

1. I am taking the amount received as check and converting into Dollars. I guess the amount will be same for Ordinary and Qualified dividends. Am I right? Also, do we need to worry about declared date at all? Meaning, can we just take the checks or credits received for calcualtion and be done with it?

2. Do we need to enter anything for Froeign taxes paid?

3. Let us say, I have incested in 20 companies, can I club the dividends and create one 1099-Div entry? OR I need to enter 1099-Div for all firms separately?

I searched through the forum and I could not get answers. Please help.

Thank You

SSPP

Hi R2iby2007,

Enter once consolidated entry for all the India dividend income, foreign tax credit wont be eligible because dividends are tax free in India, hence you wont get any credit on you US tax returns.

Also note that foreign dividends are taxed as ordinary dividends and the qualified dividends in this case will be zero.

We provide assistance in both USA and India tax filings from Pune. You can send us the complete details on [email][email protected][/email] or visit us at www.kkassociate.com

Regards,
KKA

kkassociate;388164Hi R2iby2007,

Enter once consolidated entry for all the India dividend income, foreign tax credit wont be eligible because dividends are tax free in India, hence you wont get any credit on you US tax returns.

Also note that foreign dividends are taxed as ordinary dividends and the qualified dividends in this case will be zero.

We provide assistance in both USA and India tax filings from Pune. You can send us the complete details on [email][email protected][/email] or visit us at www.kkassociate.com

Regards,
KKA

If foreign companies trade as ADRs in US, are they not qualified dividends even if you hold in India. That is waht I gather from IRS instructions about qualified foreign dividends ?