Select your location

Who are you ?

Select another location

Wer bist du ?

Wählen Sie einen anderen Ort

Qui êtes vous ?

Sélectionnez un autre emplacement

Qui êtes vous ?

Sélectionnez un autre emplacement

Qui êtes vous ?

Sélectionnez un autre emplacement

Wer bist du ?

Wählen Sie einen anderen Ort

Wer bist du ?

Wählen Sie einen anderen Ort

Qui êtes vous ?

Sélectionnez un autre emplacement

Wer bist du ?

Wählen Sie einen anderen Ort

Qui êtes vous ?

Sélectionnez un autre emplacement

Who are you ?

Select another location

Who are you ?

RETIREMENT PLAN INVESTOR

Use your plan ID (available on your account statement) to determine which employer-sponsored retirement plan website to use:

IF YOUR PLAN ID BEGINS WITH IRK, BRK, 1 OR 2

Visit americanfunds.com/retire

IF YOUR PLAN ID BEGINS WITH 34 OR 135

Visit myretirement.americanfunds.com

Foreign tax information

The American Funds listed in the foreign income worksheet and foreign qualified dividend income worksheet distributed foreign taxes on earnings from investments outside the United States. The foreign taxes distributed by these funds are reported on your Form 1099-DIV, and you may claim a foreign tax credit or deduction for your share of the foreign taxes distributed.

Foreign tax credit vs. deduction

You may claim a foreign tax credit or take an itemized deduction for your share of the foreign taxes distributed by a qualifying fund. However, you will usually receive more benefit by claiming a tax credit.

For more information about the IRS requirements to claim a foreign tax credit, refer to IRS Publication 514, foreign tax credit for individuals. (To order, call (800) 829-3676 or download from the IRS website.)

Note: If you can claim a foreign tax credit directly on Form 1040, you do not need to complete the foreign income or foreign qualified dividend income worksheet.

Claiming a credit for foreign taxes

If you are an individual taxpayer and you meet all of the requirements to claim a foreign tax credit, you can claim the credit directly on IRS Form 1040 if all of the following apply:

  • All your foreign taxes from mutual funds and other sources are not more than $300 ($600 if married filing jointly).
  • All your foreign income falls into the passive income category as defined by the IRS.
  • All your foreign taxes are reported on Form 1099-DIV, Form 1099-INT, Schedule K-1 or a substitute statement.


If one or more of these do not apply, you must complete the foreign income worksheet and the foreign qualified dividend income worksheet. The information from these worksheets should be reported on IRS Form 1116 (Form 1118 for corporations).

The foreign tax paid can be obtained from either the foreign tax paid amounts shown in the Year-to-Date transaction history section of your year-end statement for all share classes you own or from Box 7 of Form 1099-DIV (individuals only).

Completing your Form 1116

According to the IRS, when you are completing Form 1116, you do not need to report income from a mutual fund or other regulated investment company (RIC) on a country-by-country basis. You can simply total all foreign income passed through from a mutual fund or other RIC and enter the total in a single column in Part I. Then enter RIC where the foreign country name is requested. Likewise, total all foreign taxes paid and enter the total on a single line in Part II for the dividends category.

Corporations

To claim a foreign tax credit, corporations should complete IRS Form 1118 using the foreign income worksheet. Corporations do not need to complete the foreign qualified dividend income worksheet, because corporations are not eligible to receive qualified dividend income.


Passive income

Generally includes mutual fund income, dividends, interest, royalties, rents, annuities, gains from the sale of non-income-producing investment property, gains from commodities transactions and, generally, capital gains not related to the active conduct of a trade or business.


Related tools


Other resources

Investments are not FDIC-insured, nor are they deposits of or guaranteed by a bank or any other entity, so they may lose value.

Investors should carefully consider investment objectives, risks, charges and expenses. This and other important information is contained in the fund prospectuses and summary prospectuses, which can be obtained from a financial professional and should be read carefully before investing.

All Capital Group trademarks mentioned are owned by The Capital Group Companies, Inc., an affiliated company or fund. All other company and product names mentioned are the property of their respective companies.

Use of this website is intended for U.S. residents only.

American Funds Distributors, Inc., member FINRA.

This content, developed by Capital Group, home of American Funds, should not be used as a primary basis for investment decisions and is not intended to serve as impartial investment or fiduciary advice.