Join Early Retirement Today
Reply
 
Thread Tools Search this Thread Display Modes
DQOTD: Foreign Tax Paid Amount?
Old 09-25-2020, 12:10 PM   #1
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Midpack's Avatar
 
Join Date: Jan 2008
Location: NC
Posts: 16,013
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.
__________________
No one agrees with other people's opinions; they merely agree with their own opinions -- expressed by somebody else. Sydney Tremayne
Retired Jun 2011 at age 57

Target AA: 40% equity funds / 35% bond funds / 25% cash
Target WR: Approx 2.5% Approx 20% SI (secure income, SS only)
Midpack is offline   Reply With Quote
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!

Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that Early-Retirement.org is a great community to join. Best of all it's totally FREE!

You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!

Old 09-25-2020, 12:45 PM   #2
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
RunningBum's Avatar
 
Join Date: Jun 2007
Posts: 9,870
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.
RunningBum is offline   Reply With Quote
Old 09-25-2020, 01:29 PM   #3
Thinks s/he gets paid by the post
 
Join Date: Jan 2006
Posts: 4,127
Quote:
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.
kaneohe is offline   Reply With Quote
Old 09-25-2020, 01:36 PM   #4
Administrator
MichaelB's Avatar
 
Join Date: Jan 2008
Location: Sheltered in place
Posts: 32,991
Iíve never seen any data on foreign taxes paid until after the year has closed.
MichaelB is online now   Reply With Quote
Old 09-25-2020, 01:54 PM   #5
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Midpack's Avatar
 
Join Date: Jan 2008
Location: NC
Posts: 16,013
Quote:
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.
__________________
No one agrees with other people's opinions; they merely agree with their own opinions -- expressed by somebody else. Sydney Tremayne
Retired Jun 2011 at age 57

Target AA: 40% equity funds / 35% bond funds / 25% cash
Target WR: Approx 2.5% Approx 20% SI (secure income, SS only)
Midpack is offline   Reply With Quote
Old 09-25-2020, 02:08 PM   #6
Thinks s/he gets paid by the post
 
Join Date: Jan 2006
Posts: 4,127
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.
kaneohe is offline   Reply With Quote
Old 09-25-2020, 03:19 PM   #7
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
pb4uski's Avatar
 
Join Date: Nov 2010
Location: Vermont & Sarasota, FL
Posts: 27,210
I had that problem too... then I sold all my international equities and the problem is solved.
__________________
If something cannot endure laughter.... it cannot endure.
Patience is the art of concealing your impatience.
Slow and steady wins the race.

Retired Jan 2012 at age 56...target 65/35/0 AA TBD
pb4uski is offline   Reply With Quote
Old 09-25-2020, 03:34 PM   #8
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
audreyh1's Avatar
 
Join Date: Jan 2006
Location: Rio Grande Valley
Posts: 27,062
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.
__________________
Retired since summer 1999.
audreyh1 is offline   Reply With Quote
Reply


Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
DQOTD: Roth Conversions & (Est) Tax Payments? Midpack FIRE and Money 5 11-15-2019 02:52 PM
Another tax question: State tax paid as a deduction BBQ-Nut FIRE and Money 9 02-19-2015 08:53 AM
tax software to handle foreign tax credit correctly? figner FIRE and Money 6 05-01-2012 03:17 PM
DQOTD: 2010 Roth IRA Rollover? Midpack FIRE and Money 10 07-13-2008 07:31 PM
DQOTD: Today's Dollars? Midpack FIRE and Money 4 06-18-2008 09:55 AM

» Quick Links

 
All times are GMT -6. The time now is 01:46 PM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2020, vBulletin Solutions, Inc.