100W Schedule H: Dividend Income Deduction -- Water's-Edge Filers (2024)
California · FTB · Used for tax years 2024
California Schedule H (100W) calculates the elimination of intercompany dividends and deductions for qualifying dividends received by water’s-edge group members and corporations receiving insurance company dividends. It is attached to Form 100W.
Who files this form
Schedule H (100W) is the dividend income deduction schedule for water’s-edge filers. It attaches to Form 100W and 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.
What you'll need
Have the information requested by the applicable parts of the schedule:
- Corporation name and California corporation number.
- Names of dividend payers and payees.
- Dividend amounts received and amounts qualifying for elimination or deduction.
- For Parts I and II, the qualifying amounts paid out of current-year and prior-year earnings and profits.
- For Parts II and III, the percentage of ownership of the dividend payer.
- For Part III, total insurance dividends received and the qualified dividend percentage.
Attach additional sheets if necessary.
How to file
Attach Schedule H to Form 100W. Attach additional sheets if necessary.
Transfer the schedule totals to Form 100W as follows:
- Part I, line 4, column (d): Form 100W, Side 2, line 10.
- Part II, line 4, total of column (g): Form 100W, Side 2, line 11a.
- Part III, line 4, total of column (g): Form 100W, Side 2, line 11b.
Common mistakes
- Do not compute foreign dividends paid by partially included members of a water’s-edge combined report on this schedule. Part II specifically excludes them.
- Do not overlook the ownership requirement in Part III: ownership of the dividend payer must be at least 80%.
- Remember to attach Schedule H to Form 100W and add sheets if necessary.
Questions people ask
How is the remaining dividend balance calculated in Part I?
Subtract column (d), the amount qualifying for 100% elimination, from column (c), total dividends received. Enter the balance in column (g).
How are deductible dividends calculated in Part II?
Column (g) is column (d), qualifying dividends received, multiplied by 75%, or 100% for dividends from construction projects.
How are deductible insurance dividends calculated in Part III?
First multiply total insurance dividends in column (d) by the qualified dividend percentage in column (e). Enter that result in column (f). The deductible amount in column (g) is 85% of column (f).
What if I need more space?
The form says to attach additional sheets if necessary.