How do I figure out my Foreign Qualified Dividends amount for my tax accountant?

The Foreign Qualified Dividends are dividends that originated from a foreign corporation but still qualify for the preferential tax rates that US dividends get. Since you're holding ADRs (American Depositary Receipts), those represent shares in foreign companies, which is why your accountant is asking for this info. Check your Form 1099-DIV from your broker. In Box 1a, you'll see your total ordinary dividends. Box 1b shows qualified dividends. But what your accountant wants is specifically how much of those qualified dividends came from foreign sources. This info is usually broken out in a supplemental section or attachment to your 1099-DIV, often labeled as "Foreign Tax Paid" and "Foreign Source Income." Some brokers make this easier to find than others. You might need to log into your brokerage account and look for the detailed tax reporting section rather than just the summary 1099-DIV.

I actually ran into this exact problem last year! I spent hours trying to figure out what my accountant meant by "foreign qualified dividends" and my regular broker statements weren't helpful. I ended up using https://taxr.ai to analyze my broker statements - it parsed all the fine print in my 1099-DIV and pulled out exactly which dividends were foreign qualified and which foreign taxes were withheld. The tool highlighted all the foreign dividend sources in my statements that I completely missed. Turns out the info was buried in the supplementary pages of my 1099-DIV in a section called "Foreign Tax Paid and Foreign Source Income Detail" that I didn't even know existed.

Just wanted to update everyone - I tried the taxr.ai site that was recommended and it totally saved me! My broker's statement was 34 pages and the foreign qualified dividends info was buried on page 29 in a section called "Supplemental Information." The tool extracted all my ADR dividends, showed which ones qualified for the preferential tax rate, and even calculated the foreign tax that was withheld. My broker had actually misclassified one of my Swedish dividends and the tool caught it! I showed all this to my accountant and she was super impressed - said it saved her at least an hour of work parsing through my statements. Worth checking out if you're dealing with ADRs or foreign stocks and getting confused by all the tax details!

For those still struggling with this, another approach I found helpful was calling the IRS directly to get clarification on how to report foreign qualified dividends. Obviously, good luck actually getting through to them though lol. After trying for days, I used https://claimyr.com to get a callback from the IRS without waiting on hold. You can also check out how it works here: https://youtu.be/_kiP6q8DX5c The IRS agent I spoke with walked me through exactly where to find this info on my 1099-DIV and explained how the foreign tax credit works with these dividends. Saved me a ton of confusion and potentially costly mistakes on my return.

Well I need to eat my words. After my skeptical comment, I decided to try Claimyr because I was desperate to figure out this foreign qualified dividends situation before filing my taxes. I got a call back from the IRS in about 2 hours (was expecting to wait all day). The agent explained that my broker's 1099-DIV has a country-by-country breakdown in the supplementary information section, and she told me exactly which pages to look at. She also confirmed that I need to report both the gross foreign dividends and the tax withheld by each country. Would have taken me days to figure this out on my own. Hate to admit I was wrong but that service actually delivered.

Just want to add some practical advice here - if your broker is Fidelity, Schwab, or TD Ameritrade, you can actually filter your transaction history for "Foreign Dividends" specifically. E*Trade makes it a bit harder but there's a tax section where you can see foreign source income. If you're really stuck, calling your broker's tax department (not just general customer service) is your best bet. Ask specifically for help locating "foreign source income" and "foreign taxes withheld" on your 1099-DIV.

Anyone know if this foreign qualified dividends stuff affects the standard deduction vs itemized deduction decision? I usually take the standard deduction but wondering if having foreign dividends might change that calculation.

I went through this exact same confusion last year! Your accountant is asking for the foreign-sourced portion of your qualified dividends because it affects your foreign tax credit calculation. Here's what I learned: ADR dividends are often subject to foreign withholding tax (usually 10-15% depending on the country and tax treaty). When you receive these dividends, the foreign country takes their cut first, then you get the remainder. But you can claim a credit for that foreign tax to avoid being taxed twice. The key is looking at your 1099-DIV carefully. Most brokers will show: - Box 1a: Total ordinary dividends - Box 1b: Qualified dividends (this includes both US and foreign) - Then somewhere (usually in supplementary pages) they'll break down how much of your qualified dividends came from foreign sources and how much foreign tax was withheld If your broker's statements are unclear, try logging into your account and looking for a "Tax Center" or "Tax Documents" section - sometimes they have more detailed breakdowns there than on the printed 1099. You can also call their tax department directly and ask them to walk you through finding the foreign dividend information. This info is crucial for your accountant to properly calculate your foreign tax credit on Form 1116, which could save you money!