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10073: 1120 - Dividends


1120 Corporate

Where do I enter dividends received by or paid by the corporation on an 1120 return?

 

Enter dividends received by the corporation, and special deductions, on screen C, Schedule C Dividends Received.

The Dividends Received Deduction Worksheet (Wks DRD) is generated from data entered in fields 3-1, 3-2, 3-3, and 3-4. The result of the Wks DRD is carried to Schedule C, line 3. 

Beginning with Drake18, the total from Schedule C, Line 23, column A, is carried to Form 1120, line 4 ("Dividends"), and the total from Schedule C, line 24, column C, is carried to Form 1120, line 29b ("Special deductions"). 

  • In Drake17 and prior, the total from Schedule C, line 19, column A, is carried to Form 1120, line 4 (“Dividends”), and the total from Schedule C, line 20, column C, is carried to Form 1120, line 29b (“Special deductions”).

If the corporation is filing a consolidated return, do not enter non-included dividends here or anywhere else in the program.

Dividends paid by a corporation can be entered on the DED screen under Other Deductions (itemize) (Other (itemize)* in Drake16 and prior). Review the guidelines for deducting dividends paid in the 1120 Instructions

"Dividends paid in cash on stock held by an employee stock ownership plan. However, a deduction may be taken for these dividends only if, according to the plan, the dividends are:

  1. Paid in cash directly to the plan participants or beneficiaries;
  2. Paid to the plan, which distributes them in cash to the plan participants or their beneficiaries no later than 90 days after the end of the plan year in which the dividends are paid;
  3. At the election of such participants or their beneficiaries (a) payable as provided under (1) or (2) above, or (b) paid to the plan and reinvested in qualifying employer securities; or
  4. Used to make payments on a loan described in section 404(a)(9).

See section 404(k) for more details and the limitation on certain dividends."

For more information, see:



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