Dividends and Royalties
Dividends are generally received by owners of stocks or bonds in a corporation. Dividends represent a share of the distribution of a corporation's profits.
Royalties are often received by one of the following:
●Owners of land, grazing interest, mining or oil lease
●Inventors
●Authors
●Composers
For NA, the following apply:
●Dividend and royalty payments are countable as unearned income.
●Key NA dividend and royalty payments using the IR ND Unearned Income Code on UNIC in the INC TYP field.
For CA, the following apply:
●Dividend and royalty payments left on deposit or converted to additional securities are not countable as unearned income.
●Key the IR PY Unearned Income Code in the INC TYP field on UNIC.
●Dividend and royalty payments made directly to the participant as a share of profit are countable as unearned income.
●Key the IR ND Unearned Income Code in the INC TYP field on UNIC.