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DQOTD: Foreign Tax Paid Amount?
Old 09-25-2020, 12:10 PM   #1
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DQOTD: Foreign Tax Paid Amount?

Every year I have some amount of foreign tax paid on VG foreign funds. While I know roughly what it will be each year, I don't know the amount until I receive my 1099-DIV in Feb of the next year. On the "withholding" worksheet I keep each year for estimated taxes, foreign tax paid is the only amount I can't "see" during the year. I see net Dividends as they're distributed, not the grossed up amount that includes foreign tax paid.

I've looked on the VG site and didn't see it. It's not crucial, but am I overlooking where I can find foreign tax paid during the year in which they occur - or do I have to wait for the 1099-DIV and estimate until then.
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Old 09-25-2020, 12:45 PM   #2
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You're not missing anything. Or we both are. This is the bane of those managing taxable income, especially to stay short of the ACA subsidy cliff since we can no longer recharacterize Roth conversions.

It tends to be about a 7% increase for VTIAX. I multiply my dividends received by 1.08 to give myself a buffer.

Early this year, when stocks dropped, I decided to get out of that fund. The uncertainty is one of the reasons, but it also throws more dividends than the US only index funds like VTSAX. I also have a lot of foreign tax credit deferred. I guess I've let the tax (and subsidy) tail wag the dog. I might get back in after I'm on Medicare.
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Old 09-25-2020, 01:29 PM   #3
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Originally Posted by Midpack View Post
Every year I have some amount of foreign tax paid on VG foreign funds. While I know roughly what it will be each year, I don't know the amount until I receive my 1099-DIV in Feb of the next year. On the "withholding" worksheet I keep each year for estimated taxes, foreign tax paid is the only amount I can't "see" during the year. I see Dividends as they occur, and they're grossed up to show foreign tax paid, but I don't know that amount?

I've looked on the VG site and didn't see it. It's not crucial, but am I overlooking where I can find foreign tax paid during the year in which they occur - or do I have to wait for the 1099-DIV and estimate until then.
If you can see gross dividends, can't you see the net dividends either distributed or reinvested. Would the FT be the difference? I'm more used to seeing the net dividends and not knowing the FT.
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Old 09-25-2020, 01:36 PM   #4
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I’ve never seen any data on foreign taxes paid until after the year has closed.
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Old 09-25-2020, 01:54 PM   #5
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Originally Posted by kaneohe View Post
If you can see gross dividends, can't you see the net dividends either distributed or reinvested. Would the FT be the difference? I'm more used to seeing the net dividends and not knowing the FT.
I misspoke, and have since corrected the OP, thanks. I only see the net dividend (distributed and reported on statements), and that's matches the dividend per share VG reports quarterly. It's not until I get the 1099-DIV the next Feb that I see the grossed up dividend and the foreign tax paid - unless I'm missing where that's shown earlier.
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Old 09-25-2020, 02:08 PM   #6
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Welcome to the club! The only place I've seen different is the broker statement which reports individual stock gross dividends and then the FT paid as a debit...........but the broker house funds report like the VG and other funds so I only know a small part of the total FT.
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Old 09-25-2020, 03:19 PM   #7
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I had that problem too... then I sold all my international equities and the problem is solved.
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Old 09-25-2020, 03:34 PM   #8
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Yeah, by the end of Jan at Fidelity I can see the dividend distributions reported to me, versus the distributions I actually had paid to me (received as income) from funds during the year. And I know the difference is going to be the foreign tax paid. The specific information is not available until later and the 1099DIV.

I also don’t know until late Jan the total qualified dividends I have received. So my tax estimates in early Jan are quite conservative with higher ordinary dividends than they end up being. I have taken to estimating %qualified dividends from prior year ratios per fund and that gets me darn close, so I don’t overpay estimated taxes in Jan.

Because 90% of the current year estimated taxes are due by Jan 15, I have quite a bit of breathing room that makes up for the lack of information. I target say 92%, but I usually end up paying about 95% of final taxes owed. Then only a little left to pay in April.

I don’t have to deal with ACA limits. I just try not to overpay estimated taxes.
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