DIV: Deduction for Dividends Received (2024)
Minnesota · Minnesota DOR · Used for tax years 2024
Minnesota’s 2024 Schedule DIV calculates a corporation’s deduction for dividends received. It reports dividends and inclusions, subtracts specified amounts, and calculates the deduction used to determine Form M4T, line 8.
Who files this form
Use Schedule DIV to calculate the deduction for dividends received by a member of your combined group. The dividends must be paid by a corporation outside the combined group and included in the corporation’s Minnesota taxable net income for the taxable year.
The deduction is not allowed if the corporation:
- Includes the stock in its inventory.
- Holds the stock primarily for sale to customers in the ordinary course of business.
- Conducts business that consists mainly of holding stocks and collecting income and gains from them.
What you'll need
Have these forms and details available to complete Schedule DIV:
- The corporation or designated filer’s name, FEIN, and Minnesota Tax ID Number.
- Federal Form 1120, line 4, for total dividends and inclusions.
- Federal Form 1120, Schedule C, for the foreign-tax gross-up, Section 965(a) inclusion, and other dividends identified in the line instructions.
- Dividend amounts for the categories listed on lines 5 through 11, including REIT dividends and dividends on debt-financed stock.
- For a unitary business, dividend amounts received by each corporation on the combined return and amounts paid between corporations on that return.
Common mistakes
- Do not enter cents. The form requires amounts to be rounded to the nearest whole dollar.
- Leave lines 2 and 3 blank. They are intentionally left blank on the form.
- Do not claim the deduction for dividends that are not included in Minnesota taxable net income for the taxable year.
- Do not claim the deduction if the corporation includes the stock in inventory, holds it primarily for sale to customers in the ordinary course of business, or mainly holds stocks and collects income and gains from them.
Questions people ask
What goes on line 1?
Enter dividends and inclusions from federal Form 1120, line 4. A unitary business enters the sum of dividends received by each corporation included on its combined return.
How are dividends between members of the combined group handled?
On line 7, enter dividends included on line 1 that one corporation on the combined return received from another corporation on that return.
Is Global Intangible Low Taxed Income included in the calculation?
Yes. For tax years beginning after December 31, 2022, Global Intangible Low Taxed Income is included in the calculation of Minnesota dividends for the dividends received deduction.
What goes on line 10 for debt-financed stock?
Enter dividends included on line 1 that were received on debt-financed stock under IRC section 246A and were not allowed a federal dividends received deduction.
Where do I use the result from Schedule DIV?
Add lines 15 and 18 to get line 19, dividends subject to apportionment. Use the line 19 amount to calculate Form M4T, line 8.