Treatment as a foreign tax credit or as a deduction will depend upon the personal tax situation of each individual shareholder. The instructions for Form 1116, Foreign Tax Credit . and IRS Publication 514, Foreign Tax Credit for Individuals . provide general information on this subject. Please consult your tax advisor for any additional information and for the appropriate treatment in your case.

Shareholders with foreign tax paid and reported in Box 6 of Form 1099-DIV, may be eligible to claim this tax paid as a foreign tax credit or as a deduction on their federal income tax returns.

To choose the credit, an individual shareholder may have two options:

1. If the shareholder qualifies for the Simplified Reporting method, they generally can report the foreign taxes paid as a tax credit directly on the foreign tax credit line of Form 1040, without regard to any foreign tax credit limitations and without filing Form 1116.
2. If the shareholder does not qualify for the Simplified Reporting method, the shareholder would generally be required to file Form 1116 to get the benefit of the foreign tax credit.

Please see Do I qualify for the Simplified Reporting Method? below for more information. The instructions for Form 1116, Foreign Tax Credit . and IRS Publication 514, Foreign Tax Credit for Individuals . also provide additional information on this subject. Please consult your tax advisor for any additional information and for the appropriate treatment in your case.

If you are an individual shareholder, you may claim the foreign tax credit without filing Form 1116 1 if you meet all of the following conditions:

1. All of your foreign source gross income for the tax year is passive income such as dividends or interest and is reported on Form 1099-DIV 2 .
2. Your total foreign taxes paid as reported on Form 1099-DIV are not more than $300 ($600 if married filing jointly).

If you meet these conditions, you may be eligible to claim your foreign tax credit directly on Form 1040, line 47, without regard to foreign tax credit limits and without filing Form 1116.

If you choose to claim a foreign tax credit and are required to file Form 1116, you are required to report your share of foreign taxes paid and foreign source income. Foreign taxes paid and foreign source income required for this form are reported to you on Form 1099-DIV. You may also visit fund search to obtain foreign taxes paid, foreign source income and foreign qualified dividends as designated by your fund.

A dividend is treated as a qualified dividend eligible for the lower rates only if certain holding period requirements are met. Under current law, shareholders must hold their mutual fund shares for at least 61 days during the 121-day period beginning 60 days before the ex-dividend date.

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