100W Schedule H: Dividend Income Deduction -- Water's-Edge Filers (2025)
California · FTB · Used for tax years 2025
California Schedule H (100W) calculates dividend income eliminations and deductions for water’s-edge filers and is attached to Form 100W. It covers intercompany dividends, qualifying dividends paid to members of a water’s-edge combined report, and dividends paid to a corporation
Who files this form
Schedule H (100W) is for water’s-edge filers reporting these dividend eliminations or deductions:
- Part I: Elimination of intercompany dividends under R&TC Section 25106.
- Part II: Deduction for qualifying dividends paid to a member of a water’s-edge combined report under R&TC Section 24411.
- Part III: Deduction for dividends paid to a corporation by an insurance company under R&TC Section 24410.
The schedule must be attached to Form 100W.
What you'll need
The schedule asks for the following information, depending on which parts you complete:
- 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, 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, 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’s totals to Form 100W, Side 2:
- Part I, line 4, column (d): Enter on line 10.
- Part II, line 4, total of column (g): Enter on line 11a.
- Part III, line 4, total of column (g): Enter on 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.
- For Part III, the percentage of ownership of the dividend payer must be at least 80%.
- Remember to attach Schedule H to Form 100W and include additional sheets if necessary.
Questions people ask
How is the intercompany 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 does Part II calculate deductible dividends?
Column (g) calls for 75% of the qualifying dividends in column (d), or 100% of dividends from construction projects.
How does Part III calculate the insurance dividend deduction?
Multiply total insurance dividends in column (d) by the qualified dividend percentage in column (e) to get column (f). The deductible amount in column (g) is 85% of column (f). Ownership of the dividend payer must be at least 80%.
Does the form explain how to determine qualifying dividends or the qualified dividend percentage?
Part II, column (d), and Part III, column (e), refer to instructions. Those instructions are not included in the supplied text.