DIV: Deduction for Dividends Received (2025)
Minnesota · Minnesota DOR · Used for tax years 2025
Minnesota Schedule DIV calculates a corporation’s deduction for dividends received for 2025. It reports dividends and inclusions, subtracts specified amounts, and calculates the deduction amounts used to complete Form M4T, line 8.
Who files this form
Use 2025 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 consisting 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.
- Dividend details for the categories on lines 5 through 11, including dividends from less-than-20-percent-owned companies, foreign sales corporations, combined-group corporations, REITs, and debt-financed stock.
Unitary businesses need the dividends received by each corporation included on the combined return.
Common mistakes
- Not rounding amounts. The form requires amounts to be rounded to the nearest whole dollar.
- Claiming a deduction for ineligible stock holdings. The deduction is not allowed when the corporation includes the stock in inventory, holds it primarily for sale to customers in the ordinary course of business, or conducts business mainly by holding stocks and collecting income and gains from them.
Questions people ask
What goes on line 1?
Enter dividends and inclusions from federal Form 1120, line 4. Unitary businesses enter the sum of dividends received by each corporation included on the combined return.
How do I report dividends paid between corporations on the same combined return?
On line 7, enter dividends included on line 1 that one corporation on your combined return received from another corporation on that return.
Is Global Intangible Low Taxed Income included in the calculation?
Yes. The 2025 instructions state that Global Intangible Low Taxed Income is included in the Minnesota dividends calculation for the dividends received deduction for tax years beginning after December 31, 2022.
What belongs on line 11?
Enter amounts included on line 1 from federal Form 1120, Schedule C, for the Section 965(a) inclusion and line 20, Other dividends.
Where do I use the amount on line 19?
Add lines 15 and 18 to get line 19, dividends subject to apportionment. Use that amount to calculate Form M4T, line 8.