The Corporate Dividends Received Deduction (DRD) allows eligible U.S. corporations that receive dividends from other U.S. corporations to deduct 50% of the total U.S. corporate dividends received from their federal taxable income.
To be eligible for the DRD, the corporation must have held the shares on which the dividend was paid for at least 46 days during the 91-day period that began 45 days before the fund’s ex-dividend date (ex-date). The ex-date is the date on which the dividend is deducted from the fund’s per share net asset value. For purposes of the holding period, you may not count the day on which the shares were purchased or acquired by reinvesting dividends, but you may count the day the shares were sold.
This worksheet helps calculate the portion of each fund’s Total Ordinary Dividends that is eligible for the DRD. Funds not listed in the chart below did not have any dividends eligible for the DRD deduction.
For each fund owned, compute the Total Ordinary Dividends received (for instructions, see Additional Information for Corporate Shareholders). Enter the result in the Total Ordinary Dividends box next to the fund’s name below, and click Submit.
*American Funds Tax-Advantaged Growth and Income PortfolioSM has been renamed, effective 1/1/20, to American Funds Tax-Aware Conservative Growth and Income PortfolioSM.
To determine your individual tax situation, please consult your tax advisor.