Bill, thanks for your very detailed reply. And thanks for catching my error---I did indeed mean VXUS instead of VTI, and have made the correction. All I can say is I've done my best to input the correct foreign income amounts and from there will put my faith in FreeTaxUSA. If the IRS later questions it, I may have to pay a penalty but don't believe they'll put me in prison. If they do, I'm going to request the one Ghislaine Maxwell's in---close enough to our home that maybe my wife will visit me occasionally.
Bill Perry mentions the IRS matching the Form 1116 with 1099s, and of course that's a big red flag when the figures don't match. A problem I have in regard to this is on the foreign income side. While my 1099s from Vanguard and Schwab clearly state the foreign tax paid, the foreign income is a different story. E.g., my Vanguard 1099 states the total amount of income from VXUS (Total International Stock ETF) in the 1099. But in the Mutual Fund and UIT Supplemental Information, it provides the Foreign Source Income Percentage, as Jim Burrows points out below. I don't know if this latter doc is even part of the 1099 that goes to the IRS. Even if it does, the end calculation of the percentage x the VXUS dividend amount isn't anywhere on the 1099 for the IRS to match to what I input on the Form 1116. With my Schwab 1099, it's even more complicated. I hold an American Fund there which has international holdings. Nowhere in the 1099 does it give the foreign percentage of the dividends, so I have to get that from a worksheet on the American Funds (Capital Group) website. So this end calculation will likewise not appear in the 1099 for the IRS to match to my Form 1116. I guess if red flags go up and I'm the unhappy recipient of a letter audit, I'll get to explain all this to the IRS.
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Bill, thanks for your very detailed reply. And thanks for catching my error---I did indeed mean VXUS instead of VTI, and have made the correction. All I can say is I've done my best to input the correct foreign income amounts and from there will put my faith in FreeTaxUSA. If the IRS later questions it, I may have to pay a penalty but don't believe they'll put me in prison. If they do, I'm going to request the one Ghislaine Maxwell's in---close enough to our home that maybe my wife will visit me occasionally.
Post: Taxes on foreign stocks
Link to comment from February 26, 2026
Bill Perry mentions the IRS matching the Form 1116 with 1099s, and of course that's a big red flag when the figures don't match. A problem I have in regard to this is on the foreign income side. While my 1099s from Vanguard and Schwab clearly state the foreign tax paid, the foreign income is a different story. E.g., my Vanguard 1099 states the total amount of income from VXUS (Total International Stock ETF) in the 1099. But in the Mutual Fund and UIT Supplemental Information, it provides the Foreign Source Income Percentage, as Jim Burrows points out below. I don't know if this latter doc is even part of the 1099 that goes to the IRS. Even if it does, the end calculation of the percentage x the VXUS dividend amount isn't anywhere on the 1099 for the IRS to match to what I input on the Form 1116. With my Schwab 1099, it's even more complicated. I hold an American Fund there which has international holdings. Nowhere in the 1099 does it give the foreign percentage of the dividends, so I have to get that from a worksheet on the American Funds (Capital Group) website. So this end calculation will likewise not appear in the 1099 for the IRS to match to my Form 1116. I guess if red flags go up and I'm the unhappy recipient of a letter audit, I'll get to explain all this to the IRS.
Post: Taxes on foreign stocks
Link to comment from February 26, 2026
Thanks. That's helpful.
Post: Taxes on foreign stocks
Link to comment from February 21, 2026