Foreign Tax Withheld - Bottom Line Effect

Taxes General Forum - Tax professionals meeting place and answers to queries. (Moderated) 

Yahoo!   Google   Windows Live   del.icio.us   digg   Netscape

Subject Author Date Foreign Tax Withheld - Bottom Line Effect DRS.Usenet@sengsational.com 08-19-2007  Re: Foreign Tax Withheld - Bottom Line Effect BillPatch 08-20-2007  Re: Foreign Tax Withheld - Bottom Line Effect Dan Lanciani 08-20-2007
Posted by DRS.Usenet@sengsational.com on August 19, 2007, 10:18 pm Please log in for more thread options It sounds to me for a small amount (< $300) of foreign taxes being withheld annually, it's no big deal to an individual investor since you get a dollar-for-dollar credit right on the 1040, but I'd like to get confirmation on this. What I'm suggesting is that in this case, although some of my money ends-up in Spain*, it's not going to effect the amount of money I fork over, correct? --Dale-- * I started here in the good old US of A with Pacific Power, which became Pacificorp, which got bought by Scottish Power, which got bought by Iberdrola. So I'm taking the ADS European tour without leaving home. I wonder where I'll end-up next! << ------------------------------------------------------- >> << The foregoing was not intended or written to be used, >> << nor can it used, for the purpose of avoiding penalties >> << that may be imposed upon the taxpayer. >> << >> << The Charter and the Guidelines for submitting posts >> << to this newsgroup as well as our anti-spamming policy >> << are at www.asktax.org. >> << Copyright (2006) - All rights reserved. >> << ------------------------------------------------------- >> Posted by BillPatch on August 20, 2007, 7:30 pm Please log in for more thread options "DRS.Use...@sengsational.com" wrote: > It sounds to me for a small amount (< $300) of foreign taxes > being withheld annually, it's no big deal to an individual > investor since you get a dollar-for-dollar credit right on > the 1040, but I'd like to get confirmation on this. What > I'm suggesting is that in this case, although some of my > money ends-up in Spain*, it's not going to effect the amount > of money I fork over, correct? Dale, Yes, it's all a wash. Bill Patch << ------------------------------------------------------- >> << The foregoing was not intended or written to be used, >> << nor can it used, for the purpose of avoiding penalties >> << that may be imposed upon the taxpayer. >> << >> << The Charter and the Guidelines for submitting posts >> << to this newsgroup as well as our anti-spamming policy >> << are at www.asktax.org. >> << Copyright (2006) - All rights reserved. >> << ------------------------------------------------------- >> Posted by Dan Lanciani on August 20, 2007, 7:30 pm Please log in for more thread options DRS.Usenet@sengsational.com (DRS.Usenet@sengsational.com) writes: > It sounds to me for a small amount (< $300) of foreign taxes > being withheld annually, it's no big deal to an individual > investor since you get a dollar-for-dollar credit right on > the 1040, but I'd like to get confirmation on this. What > I'm suggesting is that in this case, although some of my > money ends-up in Spain*, it's not going to effect the amount > of money I fork over, correct? A related question: is foreign tax withheld the same as foreign tax paid? Or does the withholding suggest that I should really be filing some kind of tax return with the foreign jurisdiction, computing a tax and possibly paying more than was withheld _or_ even getting a refund? When a fund reports foreign tax paid on a 1099 I assume they have in fact paid the correct tax, but when a broker withholds foreign tax on a stock dividend how can they know my actual foreign tax liability unless some simplifying treaty specifies a fixed percentage? > * I started here in the good old US of A with Pacific Power, > which became Pacificorp, which got bought by Scottish Power, > which got bought by Iberdrola. So I'm taking the ADS > European tour without leaving home. I wonder where I'll > end-up next! I had Lucent which became Lucent-Alcatel ADR thus prompting the broker to withhold foreign tax on the last dividend. This was in a Roth IRA. Is any deduction or credit available to me? Dan Lanciani ddl@danlan.*com << ------------------------------------------------------- >> << The foregoing was not intended or written to be used, >> << nor can it used, for the purpose of avoiding penalties >> << that may be imposed upon the taxpayer. >> << >> << The Charter and the Guidelines for submitting posts >> << to this newsgroup as well as our anti-spamming policy >> << are at www.asktax.org. >> << Copyright (2006) - All rights reserved. >> << ------------------------------------------------------- >> Similar Threads Posted Re: Foreign Tax Withheld - Bottom Line Effect August 26, 2007, 3:00 am Re: Foreign Tax Withheld - Bottom Line Effect August 30, 2007, 11:20 pm Re: Foreign Tax Withheld - Bottom Line Effect September 1, 2007, 12:07 am question about line 75 - Amount of line 73 you want applied to your 2008 estimated tax June 23, 2008, 6:31 pm No State Tax withheld! December 28, 2006, 12:26 am Illinois tax withheld from K-1-P January 4, 2007, 8:54 pm question about Non Resident (NRA) tax withheld April 12, 2008, 4:59 pm Missing 1099R with tax withheld and 2004 return April 4, 2008, 8:26 pm How do I get refund back from VA?? taxes were mistakenly withheld for one month in 2007??? April 10, 2008, 11:06 am IRS Form 3520, Section 679 IRC - what is a "foreign trust"? Not a foreign partnership, right? July 25, 2007, 6:22 pm