The "Dividends Received Deduction" is a tax deduction received by a corporation on the dividends it receives by other corporations in which it has an ownership stake. It only applies to corporate tax returns. On a corporate return (Form 1120), it is a deduction from corporate taxable income.
The are entered on Form 1120, Schedule C (or the applicable schedule of your income tax return). For details regarding this deduction click the link.
Line 1, Column (a) Enter dividends (except those received on certain debt-financed stock acquired after July 18, 1984—see section 246A) that are:
• Received from less-than-20%-owned domestic corporations subject to income tax, and
• Qualified for the 50% deduction under section 243(a)(1)
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