Distributions that Qualify for the 50% Federal Dividends Received Deductions

[Ngulley26]

Received a notice that 68.8% of dividends Qualify for the 50% Federal Dividends Received Deduction for Corporations.  Where do I enter this on TurboTax.  

[DianeW777]

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.

• IRS Publication 542

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)

• IRS Instructions Form 1120 (page 17)

[Mike9241]

if this is for your personal return, ignore it.