Author Topic: Foreign stocks -- how to claim foreign tax credits  (Read 407 times)

Offline Woofwoof

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Foreign stocks -- how to claim foreign tax credits
« on: January 23, 2022, 08:04:32 PM »
Hello all:

I have some foreign stock holdings and my understanding is that I can claim foreign tax credits to reduce my US tax bill. However, my brokerages are Fidelity and Schwab, which don't separate foreign investments from US investments. I use H&R Block to file my taxes.

So, what should I do to claim foreign tax credits?

Thanks a million!

Offline AsherO

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Re: Foreign stocks -- how to claim foreign tax credits
« Reply #1 on: January 23, 2022, 08:16:21 PM »
Hello all:

I have some foreign stock holdings and my understanding is that I can claim foreign tax credits to reduce my US tax bill. However, my brokerages are Fidelity and Schwab, which don't separate foreign investments from US investments. I use H&R Block to file my taxes.

So, what should I do to claim foreign tax credits?

Thanks a million!

Youíre paying foreign taxes on these investments? Itís those foreign taxes youíre paying that you should be getting a credit on.

Offline gozalim

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Re: Foreign stocks -- how to claim foreign tax credits
« Reply #2 on: January 23, 2022, 10:16:55 PM »
If you're using tax software, you can download the 1099 directly from those brokerages, with those details properly defined

Offline Woofwoof

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Re: Foreign stocks -- how to claim foreign tax credits
« Reply #3 on: January 23, 2022, 11:03:03 PM »
Thank you. I know that many countries impose withholding taxes on dividends or capital gains for foreign investors.

Offline Woofwoof

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Re: Foreign stocks -- how to claim foreign tax credits
« Reply #4 on: January 23, 2022, 11:11:42 PM »
If you're using tax software, you can download the 1099 directly from those brokerages, with those details properly defined

Thank you. Is there a way to do it without logging into my brokerage accounts from H&R Block? I don't want to risk losing my Fidelity and Schwab passwords if H&R Block is hacked.

Offline gozalim

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Re: Foreign stocks -- how to claim foreign tax credits
« Reply #5 on: January 23, 2022, 11:12:35 PM »
Thank you. Is there a way to do it without logging into my brokerage accounts from H&R Block? I don't want to risk losing my Fidelity and Schwab passwords if H&R Block is hacked.
change password then change back

Offline AsherO

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Re: Foreign stocks -- how to claim foreign tax credits
« Reply #6 on: January 23, 2022, 11:55:04 PM »
Thank you. I know that many countries impose withholding taxes on dividends or capital gains for foreign investors.

So your brokerage would withhold money from you and not report that to you? Somehow I doubt it.