CO-420: Foreign Dividend Factor Increments (for Unitary-Combined only) (2025)
Vermont · Vermont Department of Taxes · Used for tax years 2025
Vermont Schedule CO-420 is used by unitary filers to calculate foreign dividend factor increments for dividend-paying affiliates. It reports dividends, taxable income, sales and other business income, and calculates the sales and receipts increments entered on Schedule CO-419.
Who files this form
The 2025 Schedule CO-420 is for unitary filers only. Complete it for each dividend payor affiliate and include it with Form CO-411. More than one Schedule CO-420 may be attached.
What you'll need
Have the following information ready:
- Entity name, the same as on Form CO-411, fiscal year ending in YYYYMMDD format, and FEIN.
- Each dividend payor affiliate’s name and FEIN.
- Each affiliate’s dividend paid, taxable income, sales or gross receipts, business interest, royalties, gross rents, and other business income.
The form also refers to Form CO-411, which must include this schedule, and Schedule CO-419, where the sales and receipts increment is entered.
How to file
Include Schedule CO-420 with Form CO-411. You may attach more than one Schedule CO-420.
Enter the combined sales and receipts increment from both Line 10 entries on all attached Schedules CO-420 on Line 2 of Schedule CO-419.
The supplied form does not state a mailing address or e-filing method.
Common mistakes
- Enter dollar amounts in whole dollars.
- Use the same entity name as on Form CO-411.
- Carry the Line 3 percentage to six decimal places. If taxable income is $0 or less, enter 100.000000%.
- Include Schedule CO-420 with Form CO-411.
- Include both Line 10 entries from all attached Schedules CO-420 when transferring the sales and receipts increment to Line 2 of Schedule CO-419.
Questions people ask
Can I attach more than one Schedule CO-420?
Yes. The form says more than one Schedule CO-420 may be attached and provides spaces for two affiliates on each schedule.
How do I calculate the dividend percentage on Line 3?
Divide Line 1, dividend paid, by Line 2, taxable income. Multiply the result by 100 and carry it to six decimal places. If taxable income is $0 or less, enter 100.000000%.
What goes into the total on Line 9?
Add Lines 4 through 8: sales or gross receipts, business interest, royalties, gross rents, and other business income.
How do I calculate and report the sales and receipts increment?
Multiply Line 9 by the percentage on Line 3 to calculate Line 10. Enter the combined Line 10 amounts from all attached Schedules CO-420 on Line 2 of Schedule CO-419.