Friday, November 6, 2009

How do you take - credit for "Foreign tax paid"- taken out of 401K account ? As there is no 1099.?

Typically on 1099- line 6- Foreign tax is reported which shows up as a credit in 1040. In 401 K- Brokerage house do not send 1099 or they don't report foreign tax taken out to IRS- so how do you take the credit ?

How do you take - credit for "Foreign tax paid"- taken out of 401K account ? As there is no 1099.?
You cannot take the foreign tax credit on a tax-sheltered investment.
Reply:You do not pay taxes on income while it is inside a 401K. Because of that the government will not allow you to take a foreign tax credit.
Reply:A 401K is a pension and is not reported on your return. That's why there is no 1099.


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