Some of the interactive worksheets request information found on Form 1099-DIV. However, because corporations do not receive that form, you should refer to the American Funds Year-End Statement to find information such as income dividends, capital gain distributions and foreign tax paid, which are reported prior to any reclassifications to return of capital and exempt-interest dividends.
To determine “Ordinary dividends,” you will need to add the “Year-to-date: Dividends” and the “Short-term capital gains” amounts on the year-end statement, and then subtract the amount of return of capital and exempt-interest dividends, if any (as reported below).
For investors in American Funds Emerging Markets Bond Fund® only:
A portion of the dividends you received (as reported under “Year-to-date: Dividends” and “Short-term capital gains” in the Activity Detail section of your year-end statement) was a return of capital. Refer to “Form 8937: Report of Organization Actions” for specific return of capital amounts in 2020.
For investors in American Funds that distribute tax-exempt income:
Except for American Funds Tax Aware Conservative Growth and Income Portfolio and American Funds Tax-Exempt Preservation Portfolio, all the income dividends on your year-end statement represent federally tax-exempt income dividends. For American Funds Tax Aware Conservative Growth and Income Portfolio, 56.64%, 59.63%, 57.44% and 58.41% of the dividends you received in March, June, September and December 2020, respectively, were exempt-interest dividends in 2020. For American Funds Tax-Exempt Preservation Portfolio, 100% of the dividends you received in January to November 2020, and 35.47% of the dividend you received in December in 2020, were exempt-interest dividends in 2020. To calculate the dividends you received, you can add together the income dividend, foreign tax paid, and short-term capital gain transactions as reported under the "Year-to-date transaction history" section of your year-end statement.
You can view or print year-end account statements online, or order duplicate statements by calling (800) 325-3590. You’ll need your company’s account number and password.
Each corporate investor’s tax situation is unique. We strongly urge you to consult a tax advisor, the Internal Revenue Service or your state tax authority to determine how specific tax laws apply to your organization. Contact your financial professional or call us for further assistance.
Determining deductions on corporate dividends:
U.S. corporations may be able to deduct from federal taxable income a portion of the dividends received from American Funds. See more information under Corporate Dividends Received Deduction Worksheet.
Business Interest Income
A portion of the dividends you received from American Funds may be treated as business interest income for purposes of IRC Section 163(j). See more information under Business Interest Income Worksheet.