Dividends and Royalties
 
(01/01/22 - 12/31/22)
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.