The Corporate Dividends Received Deduction (DRD) allows eligible U.S. corporations that receive dividends from other U.S. corporations to deduct 70% 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.
Investors should carefully consider investment objectives, risks, charges and expenses. This and other important information is contained in the fund prospectuses and summary prospectuses, which can be obtained from a financial professional and should be read carefully before investing.
Investments are not FDIC-insured, nor are they deposits of or guaranteed by a bank or any other entity, so they may lose value.
To determine your individual tax situation, please consult your tax advisor.