2022 Tax Reporting for Foreign Taxes Paid

Most investors can take a credit or a deduction for their share of foreign taxes paid, as reported in Box 7 of Form 1099-DIV, by their mutual funds with significant non-U.S. holdings. Taking a credit usually is more advantageous, but to qualify you must have held your shares in a fund for at least 16 days of the 31-day period starting 15 days before the ex-dividend date of the fund. For additional information, refer to IRS Publication 514, Foreign Tax Credit for Individuals, and the Instructions for Form 1116, Foreign Tax Credit (Individual, Estate, or Trust).

Tax Reporting for Foreign Taxes Paid Tables
Foreign Tax Deduction

If you wish to take a deduction instead of a credit:

  • For each fund that paid foreign taxes, use Schedule A (Form 1040), Itemized Deductions, to report the amount from Box 7 of your Form 1099-DIV. See the instructions for Form 1040 for additional information.

Foreign Tax Credit

If you wish to take a credit, you may elect to report the total foreign taxes paid in Box 7 of your Form 1099-DIV directly on Schedule 3 (Form 1040) if you meet all of the following conditions:

  • Your total creditable foreign taxes from all sources are not more than $300 ($600 if married filing jointly),

  • All such income is passive (all ordinary income from T. Rowe Price funds is passive), and 

  • All such income and any foreign taxes paid are reported on Form 1099-DIV (or other qualified payee statement).

If you do not meet the conditions above, you generally will be required to complete Form 1116 , Foreign Tax Credit (Individual, Estate, or Trust). Form 1116 computes the amount of the foreign tax credit you may claim on your tax return.

Information to assist you in completing your Form 1116 is provided in the tables below. Please note that you do not need to report the income or taxes paid by a mutual fund on a country-by-country basis on this form. To calculate your foreign source income and foreign source qualified income, multiply the amount in Box 1a of your Form 1099-DIV by the “Foreign source income %” and “Foreign source qualified income %” columns, respectively.  If your fund has foreign source qualified dividends, you may be required to make certain adjustments to this amount unless you qualify for an adjustment election. Please refer to the Instructions for Form 1116 for more detailed information.

Please consult your tax advisor for the impact to your return.

International/Global Stock and Bond Funds
T. Rowe Price International/Global Stock and Bond Funds
  Foreign Source Income Percentage Foreign Source Qualified Dividend Percentage
International/Global Stock Funds
Africa & Middle East 99.18% 63.68%
Asia Opportunities 58.53% 28.68%
China Evolution Equity 48.32% 31.01%
Emerging Europe 100.00% 97.65%
Emerging Markets Discovery Stock 72.65% 38.29%
Emerging Markets Stock 70.26% 44.34%
European Stock 100.00% 100.00%
Global Industrials 19.72% 19.72%
International Disciplined Equity 100.00% 100.00%
International Discovery 100.00% 100.00%
International Equity Index 100.00% 100.00%
International Stock1 79.14% 69.20%
International Value Equity 100.00% 89.73%
Japan 100.00% 100.00%
Latin America 87.66% 87.66%
New Asia 48.67% 23.48%
Overseas Stock 92.89% 85.62%
Retirement, Spectrum, and Target Funds
T. Rowe Price Retirement Funds
  Foreign Source Income Percentage Foreign Source Qualified Dividend Percentage
Retirement 2005 8.15% 7.90%
Retirement 2010 9.30% 9.10%
Retirement 2015 10.11% 9.98%
Retirement 2020 11.47% 11.47%
Retirement 2025 14.45% 14.45%
Retirement 2030 19.98% 19.98%
Retirement 2035 27.63% 27.63%
Retirement 2040 34.60% 34.60%
Retirement 2045 38.61% 38.61%
Retirement 2050 40.87% 40.87%
Retirement 2055 41.35% 41.35%
Retirement 2060 40.13% 40.13%
Retirement 2065 43.03% 43.03%
Retirement Balanced 7.21% 6.99%
Retirement Income 2020 11.97% 11.73%
Retirement Blend 2005  10.55% 9.82%
Retirement Blend 2010 10.88% 10.35%
Retirement Blend 2015 12.70% 11.98%
Retirement Blend 2020
14.50% 13.73%
Retirement Blend 2025  17.24% 16.59%
Retirement Blend 2030 23.64% 23.04%
Retirement Blend 2035 30.49% 30.39%
Retirement Blend 2040 38.41% 38.41%
Retirement Blend 2045 41.29% 41.29%
Retirement Blend 2050 43.52% 43.52%
Retirement Blend 2055 43.53% 43.53%
Retirement Blend 2060 43.93% 43.93%
Retirement Blend 2065 38.52% 38.52%
T. Rowe Price Retirement I, Spectrum and Target Funds
  Foreign Source Income Percentage Foreign Source Qualified Dividend Percentage
Retirement I 2005 - I Class 8.39% 7.73%
Retirement I 2010 - I Class 9.43% 8.72%
Retirement I 2015 - I Class 10.64% 9.92%
Retirement I 2020 - I Class 11.78% 11.06%
Retirement I 2025 - I Class 14.87% 14.17%
Retirement I 2030 - I Class 20.25% 19.82%
Retirement I 2035 - I Class 28.28% 28.28%
Retirement I 2040 - I Class 34.07% 34.07%
Retirement I 2045 - I Class 41.79% 41.79%
Retirement I 2050 - I Class 45.03% 45.03%
Retirement I 2055 - I Class 44.99% 44.99%
Retirement I 2060 - I Class 44.89% 44.89%
Retirement I 2065 - I Class 43.64% 43.44%
Retirement Balanced I - I Class 7.54% 6.90%
Spectrum Growth 22.77% 22.77%
Spectrum International   81.66% 81.66%
Target 2005 6.03% 5.57%
Target 2010 6.52% 6.05%
Target 2015 6.75% 6.29%
Target 2020 7.72% 7.27%
Target 2025 9.93% 9.43%
Target 2030 13.75% 13.33%
Target 2035 19.53% 19.43%
Target 2040 25.61% 25.61%
Target 2045 32.89% 32.89%
Target 2050 40.61% 40.61%
Target 2055 45.08% 45.08%
Target 2060 47.38% 47.38%
Target 2065 43.76% 43.76%

1The fund received a refund of foreign taxes paid (with an interest adjustment) and the amount of Foreign Tax Paid in Box 7 may be less than what is included in Box 1a for Ordinary Dividends on your Form 1099-DIV. Ordinary Dividends is the sum of your income dividends, short-term capital gain, foreign tax paid, as well as any interest adjustment.

If a fund is not listed, it did not pass through a foreign tax credit.

Percentages are the same for all fund classes (Investor, Advisor, R, and I classes; Portfolio and Portfolio–II classes). For more information on Advisor, R, Institutional, and Portfolio funds, please visit our website for financial intermediaries.


202301-2706248

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