U.S. Tax Treatment

Pursuant to Internal Revenue Code Section 6045B, we are reporting to all stockholders of record the estimated character of our 2017 cash distributions. Qualcomm previously reported that its calendar year 2017 distributions to stockholders should be treated as non-taxable return of capital because we expected the distributions to exceed Qualcomm’s US earnings and profits. As a result of the recently enacted Tax Cuts and Jobs Act of 2017 (the Tax Legislation), Qualcomm’s December 15, 2017 distribution (paid out of Qualcomm’s fiscal year 2018) will be treated as a taxable dividend. The distributions paid to stockholders on March 22, 2017, June 21, 2017, and September 20, 2017 remain non-taxable (return of capital). The determination of whether a distribution is treated as a taxable (dividend) or non-taxable (return of capital to stockholders) is based upon an estimate of U.S. earnings and profits. 

The classification of the December 2017 dividend as taxable represents a change from what was initially reported on January 2018 on the 2017 IRS Form 1099-DIV.  A corrected IRS Form 1099-DIV will be issued reflecting the March, June and September calendar 2017 distributions as non-taxable returns of capital (Box 3 - Non-dividend distributions - not subject to capital gains tax rates) and the December 2017 distribution as a taxable dividend (Box 1 – Qualified Dividends – subject to capital gains tax rates). Also, as a result of this change, an updated IRS Form 8937 is available for download below.

Note the classification of cash distributions is based on estimates and accordingly, 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, an IRS Form 1099-DIV reflecting the March, June and September 2017 distributions as non-taxable returns of capital (Box 3 - Non-dividend distributions - not subject to capital gains tax rates) and December 2017 distribution as a taxable dividend (Box 1 – Qualified Dividends – subject to capital gains tax rates).  Your bank or broker will issue a corrected 1099-DIV in accordance with IRS rules and regulations, the timing of which will be dependent upon any filing extensions your broker may choose to make.  Qualcomm has provided all the information necessary to your broker to enable them to process a corrected 1099-DIV.

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 March, June and September 2017 distributions as non-taxable returns of capital (Box 3 - Non-dividend distributions - not subject to capital gains tax rates) and the December 2017 distribution as a taxable dividend (Box 1 – Qualified Dividends – subject to capital gains tax rates). Computershare will issue a corrected 1099-DIV and is expected to mail out the corrected 1099-DIV statements the week of March 12th, 2018.  Qualcomm has provided all the information necessary to Computershare to enable them to process a corrected 1099-DIV.

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.

Still have Questions?  See our Supplemental Cash Distribution FAQ here

*Note: Effective with dividends starting in fiscal first quarter of 2018 (paid to stockholders December 2017), we now believe dividends will be taxable to stockholders.

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: /stock-information/dividends-splits.

Still have Questions?  See our Supplemental Cash Distribution FAQ here

Date Title
Mar 2, 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.