Is it possible some of the foreign qualified dividends got taxed at 0% on your return? Examining both the qualified dividends and capital gains tax worksheet and form 1116 should explain why the credit is limited.That all makes perfect sense. But that's just not what's happening.
In this case, the foreign tax rate is lower than the US tax rate. I'm paying the full US tax rate (the higher rate), but only getting credit for part of the foreign taxes paid (the lower rate). The foreign taxes paid that exceed the FTC cap represent a double tax.
Statistics: Posted by BlizzardPearl — Wed Jan 29, 2025 9:50 pm — Replies 16 — Views 1081
