100S Schedule H: S Corporation Dividend Income Deduction (2024)
California · FTB · Used for tax years 2024
California Schedule H (100S) calculates an S corporation’s dividend income deduction and is attached to Form 100S. It reports intercompany dividends qualifying for elimination, qualifying dividends paid to a member of a water’s-edge combined report, and qualifying insurance compa
Who files this form
Schedule H (100S) is the 2024 S Corporation Dividend Income Deduction schedule. It covers:
- Elimination of intercompany dividends under R&TC Section 25106.
- Deductions for qualifying dividends paid to a member of a water’s-edge combined report under R&TC Section 24411.
- Deductions for dividends paid to a corporation by an insurance company under R&TC Section 24410.
The form directs you to attach Schedule H to Form 100S.
What you'll need
Have the information requested for the applicable parts of the schedule:
- Corporation name and California corporation number.
- Dividend payer and dividend payee names.
- Dividend amounts received and amounts qualifying for elimination or deduction.
- For Parts I and II, qualifying amounts paid from current-year and prior-year earnings and profits.
- For Parts II and III, the percentage of ownership of the dividend payer.
- For Part III, the qualified dividend percentage.
The form refers to instructions for the Part II qualifying dividend amount and the Part III qualified dividend percentage. Those instructions were not provided here.
How to file
Attach Schedule H to Form 100S. Attach additional sheets if necessary.
Transfer the totals as follows:
- Part I: Total each column on line 4. If there is no entry in Part III, enter Part I, line 4, column (d), on Form 100S, Side 2, line 9.
- Part II: Total column (g) on line 4 and enter it on Form 100S, Side 2, line 10.
- Part III: Total column (g) on line 4, add Part I, line 4, column (d), and enter the result on Form 100S, Side 2, line 9.
The supplied form does not provide a mailing address or e-file directions.
Common mistakes
- Do not compute foreign dividends paid by partially included members of a water’s-edge combined report on this schedule. Part II expressly excludes them.
- Do not overlook the Part III ownership requirement: ownership of the dividend payer must be at least 80%.
- Remember to attach Schedule H to Form 100S and attach additional sheets if necessary.
Questions people ask
What elimination does Part I cover?
Part I includes an amount qualifying for 100% elimination of intercompany dividends under R&TC Section 25106.
What deduction percentage appears in Part II?
Column (g) calls for 75% of the qualifying dividends in column (d), or 100% of dividends from construction projects.
How is the insurance dividend deduction calculated in Part III?
Multiply total insurance dividends in column (d) by the qualified dividend percentage in column (e). Enter that amount in column (f), then calculate 85% of column (f) for the deductible dividends in column (g).
What if I need more space?
The form says to attach additional sheets if necessary.