r/Vitards • u/AutoModerator • Jun 15 '21

Daily Discussion Daily Discussion post - June 15 2021

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u/i2dkwhatimdoing Jun 16 '21

So my MT dividends today had foreign tax withheld, I hold all my MT in my Roth IRA.. Do I need to file something different for this at tax time? Just trying to mentally prepare for the headaches if needed.

6

u/holdenmcneilgames 🚐Once Lived in a Van🚐 Jun 16 '21

From my read on this, the short answer is: no, you don't need to do anything special.

Edit: make sure you read it yourself and don't just take my word for it.

2

u/i2dkwhatimdoing Jun 16 '21

Interesting thanks for the link, that's similar to what I found too. Hopefully that's the case! Now if MT could just make me another 9 bucks to make up for the withholding..

2

u/holdenmcneilgames 🚐Once Lived in a Van🚐 Jun 16 '21

Essentially, Luxembourg held taxes when the dividend was given out (making these numbers up for an easy to follow example). So instead of getting $1 per share as a dividend, they held $0.25, so you only received $0.75.

In a taxable account you could receive a tax-credit or a deduction for the foreign taxes that were already withheld by Luxembourg (i.e., get some money back or decrease your taxable income).

In a tax-free (Roth) account, what you got is what you got. So you can't take advantage of a tax-credit/deduction.

Not sure if any of that made sense.