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How do I address “Foreign tax paid” and "Foreign income" in my tax return or tax software?

In the Dividends and Distributions section of your Form 1099, you may have a values in boxes 7 & 8: “Foreign tax paid” and the corresponding “Foreign country or US possession.” These values represent foreign taxes that were paid as a result of dividends you received from ETFs like VEA or VWO, which hold a broad range of foreign securities representing many countries. As such, in most cases clients enter “Various” when prompted for the country to which the foreign tax was paid, unless they need to break down the taxes paid on a per-country basis (not common).

These foreign taxes paid may make you eligible for a foreign tax credit/deduction when you file your tax return. Details for each dividend received can be found in the Dividend & Distribution Details section towards the end of your Form 1099. Your tax preparer or tax software should be able to provide additional guidance on this topic.

If your tax software asks for foreign income/foreign source amount, you can get this information from the Foreign Income and Taxes Summary page of your 1099.

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