Foreign Dividends (2018) – U.S. Income Tax & IRS Reporting Basics

Foreign Dividends (2018) – U.S. Income Tax & IRS Reporting Basics Foreign Dividends (2018) – U.S. Income Tax & IRS Reporting Basics by Golding & Golding Foreign Dividend income is usually included on a U.S Tax Return in two different places: Schedule B, and FATCA Form 8938 (presuming the reporting threshold requirements have been met for Form 8938) Foreign Dividend Income How can the U.S. Government tax foreign dividend income? It is because the United States is a Citizen-Based Taxation (CBT) model, which means the United States taxes U.S. Person (U.S. Citizens, Legal Permanent Residents, and Foreign Nationals to meet the Substantial Presence Test) on their worldwide income. Here are some of the more common issues we handle on the topic of Foreign Dividend and U.S. Taxes: Non-Taxable in Foreign Country Not all countries tax dividend income, or if they do, it is taxed at a very reduced tax rate — and only in certain situations.…

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