Instructions for Form 100 Schedule H Dividend Income Deduction - California

This document contains official instructions for Form 100 Schedule H, Dividend Income Deduction - a form released and collected by the California Franchise Tax Board.

FAQ

Q: What is Form 100 Schedule H?A: Form 100 Schedule H is a form used by taxpayers in California to claim the Dividend Income Deduction.

Q: What is the Dividend Income Deduction?A: The Dividend Income Deduction is a deduction that allows taxpayers in California to reduce their taxable income by a certain percentage of their qualified dividend income.

Q: Who is eligible for the Dividend Income Deduction?A: Taxpayers who are residents of California and have received qualified dividend income are eligible for the deduction.

Q: What is qualified dividend income?A: Qualified dividend income is income received from certain domestic and foreign corporations that meet certain criteria set by the IRS.

Q: How much is the Dividend Income Deduction?A: The deduction is generally 50% of the taxpayer's qualified dividend income, but there are certain limitations and exceptions.

Q: How do I claim the Dividend Income Deduction?A: To claim the deduction, you must complete Form 100 Schedule H and attach it to your California Form 100 tax return.

Q: Are there any other requirements or limitations for claiming the deduction?A: Yes, there are certain requirements and limitations. It is recommended to review the instructions for Form 100 Schedule H for more information.

Q: Can I claim the Dividend Income Deduction if I don't live in California?A: No, the Dividend Income Deduction is only available to taxpayers who are residents of California.

Q: Is the Dividend Income Deduction the same as the federal dividend tax rate?A: No, the Dividend Income Deduction is a state-level deduction for California residents, while the federal dividend tax rate is a separate tax rate set by the IRS for qualified dividend income.