Are foreign taxes that are paid on traditional IRA dividends deductible?

ANSWER

Expert Thomas Graham iii's Answer:

Yes, foreign taxes that are paid on Traditional IRA Dividends are either deductible or eligible for a tax credit. The amount paid in foreign taxes will be reported in box 6 of form 1099-DIV which should be received during January or February of the following year. You can then report this information on Line 8 of Schedule A which relates to Itemized Deductions. Please be aware that to claim the taxes as deductible you will need to itemize. Therefore, receiving a tax credit might be a better idea.

Thomas Graham iii, CPA, CFE

Oklahoma

7 yrs experience

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