Terry5
Level 1

One of my individual client brought in Form 1099-DIV that shows dividends in box 1, the same number in box 2 (qualified div) and the same amount in box 5 (Sec 199A Div).

I know that the company that paid dividends and issued the form 1099-DIV is not REIT or RIC. It is a construction company. I researched Sec 199A, and to my understanding, only dividends paid by REIT's or RIC's qualify for this special 20% deduction. But I am not sure about it? I need backup. 

Should I claim 20% deduction on the taxpayer 1040? Or should I talk to the client about it?

Please help. Thank you.

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