Cyclone Posted March 2, 2014 Report Share Posted March 2, 2014 I have a client that is a US resident (Physician) and his only earned income is from the United States and he lived here all year. He previously was from another country and still has family there. He has investments held in his home country and says his account over there paid dividends of about $1,500 (when converted to US dollars) in 2013. He is not filing a tax return in the other country and is asking me if he needs to report the dividends from the other country on his US tax return. He will not be receiving a 1099 of any sort from the investment firm in the other country. I know he needs to do the FBAR filing by June 30th. I have searched and can not find a definite answer on if the dividends from the other county need to be reported on his US tax return. If so, is there any special notes I should put on the Schedule B to report it? I appreciate any guidance. Quote Link to comment Share on other sites More sharing options...
joanmcq Posted March 2, 2014 Report Share Posted March 2, 2014 sure they have to be reported. Worldwide income. I put them on the dividend form with the name of the payor, and uncheck the box that says to add to the payor manager. Haven't had an issue so far....but the one client I have with this issue always goes on extension, so I'm not sure about this year. 1 Quote Link to comment Share on other sites More sharing options...
Pacun Posted March 2, 2014 Report Share Posted March 2, 2014 I think you are going to exclude his income because he was in that country for the whole year, correct? Plug in the global income and see what happens. Correction: I just realized that the taxpayer was in the states all year, so he must report the dividends whether or not they will be reported to the IRS by the institution. Quote Link to comment Share on other sites More sharing options...
joanmcq Posted March 3, 2014 Report Share Posted March 3, 2014 Dividends aren't excludable, even if the OP didn't say he lived in the US all year... Quote Link to comment Share on other sites More sharing options...
Lion EA Posted March 3, 2014 Report Share Posted March 3, 2014 ...and the FATCA too. Quote Link to comment Share on other sites More sharing options...
joanmcq Posted March 3, 2014 Report Share Posted March 3, 2014 Oh, and whatever the form is you file with the return that lists all the foreign accounts if your account balance is over something like 50K. Can't remember the number right now. Quote Link to comment Share on other sites More sharing options...
Cyclone Posted March 3, 2014 Author Report Share Posted March 3, 2014 Oh, and whatever the form is you file with the return that lists all the foreign accounts if your account balance is over something like 50K. Can't remember the number right now. Thank you for all your replies. I knew there was the FBAR and Form 8938 filing requirements if the foreign assets exceed certain amounts. I was not aware of some of the provisions of the Foreign Account Tax Compliance Act (FATCA) that took effect in 2010. I guess I will be reporting my client's foreign dividends. Quote Link to comment Share on other sites More sharing options...
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