U.S. Tax Treatment

2017 Cash Distributions

Pursuant to Internal Revenue Code Section 6045B, we are reporting to all stockholders of record the estimated character of our 2017 cash distributions. Qualcomm has made the preliminary determination that the cash distributions (i.e., dividends) paid to stockholders on March 22, 2017, June 21, 2017, September 20, 2017 and December 15, 2017 represent non-taxable returns of capital to stockholders. This determination is based upon an estimate of earnings and profits and any distribution a stockholder may have received on those dates should be treated as a return of capital. It is possible that as we complete and file our U.S. corporate tax return filings with the IRS for fiscal 2017 and 2018, this estimate of earnings and profits could change and result in a change to the character of the dividend reported above. If that happens, a corrected IRS Form 1099-DIV will be issued, and in cases where the tax basis is affected, an IRS Form 8937 will be published on our website below. Please note that Qualcomm Incorporated is a corporation for U.S. federal tax purposes, and owners of the shares who receive a distribution will only receive an IRS Form 1099 shortly after year end. We encourage stockholders of record to consult their Tax Advisor for proper treatment of any Qualcomm Incorporated distribution for inclusion in the stockholders of record's tax return.

If you hold your stock in street name (through a bank or broker) and dividends were deposited into your brokerage account, that institution will mail you, no later than January 31, 2018, an IRS Form 1099-DIV reflecting the 2017 distributions as non-taxable returns of capital (Box 3 - Non-dividend distributions - not subject to capital gains tax rates).

If you hold your stock in certificate form or through a Direct Registration Account at Computershare Investor Services (the Company's "transfer agent") and dividend checks were mailed to you or reinvested, the transfer agent will mail you an IRS Form 1099-DIV reflecting the 2017 distributions as non-taxable returns of capital (Box 3 - Non-dividend distributions - not subject to capital gains tax rates).

We urge each stockholder to consult with his or her own tax advisor to determine the tax consequences of the distributions, including any state, local or foreign tax considerations.

2016 Cash Distributions

Qualcomm has updated its third and fourth quarter calendar 2016 preliminary cash distribution determination. As a result, distributions made during these periods are now classified as non-taxable returns of capital. The change in determination was made based on the results of Qualcomm's fiscal 2016 IRS tax return filing and an update to our estimate of earnings and profits for fiscal 2017. The revised determination impacts cash distributions (i.e., dividends) paid to stockholders on September 21, 2016 and December 16, 2016. A corrected IRS Form 1099-DIV will be issued showing a distribution in Box 3 - Non-dividend distributions - not subject to capital gains tax rates. Also, as the tax basis was affected, an IRS Form 8937 is available for download below.

We urge each stockholder of record for such distributions to consult with his or her own tax advisor to determine the tax consequences of the change in classification for such distributions, including any state, local or foreign tax considerations.

For a listing of the details regarding the dividend per share amount and relevant dates, please refer to our dividend history here: http://investor.qualcomm.com/dividends.cfm.

Still have Questions?  See our Supplemental 2016 Cash Distribution FAQ here

IRS Form 8937 Download

Date Title
Jan 8, 2018 2017 Form 8937
Jan 8, 2018 2016 Form 8937

Tax Basis FAQs

For further discussion regarding the tax basis of Qualcomm stock, please refer to our Investor FAQ section which can be found here.