Posting refunds of foreign taxes previously withheld
A client with many foreign dividends had tax withheld initially at 30%. They have now received one refund of the foreign taxes such that the net tax withheld is now 15%. Other than going back into each dividend received, is there a method of accounting for the refund of the excess foreign taxes so that the FITO amount is reduced and the net cash dividends are increased? I can't seem to input negative foreign taxes if I have a debit cash transaction.
0
-
Hi John,
- You can create a new custom income account in the chart of accounts for the refund of US foreign resident withholding using the following accounting range: How to Add Other Accounts
- You will need to set the tax label according to your preference. So it can flow into the correct field(s) in the tax return
- Then you can post the amount to that account to reflect it in your financials.
I hope the above answers your post and if there are any further questions please reply to let me know so I may assist further.
0 - You can create a new custom income account in the chart of accounts for the refund of US foreign resident withholding using the following accounting range: How to Add Other Accounts
Please sign in to leave a comment.
Comments
1 comment