Internal Revenue Service United States Department of the Treasury
Level Basic Advanced Military International

Sources of Income

Determining Income Source

Dividend Income

Location of Payer

The source of income from dividends is determined by the location of the payer. Dividends from corporations located:

  • In the U.S. are U.S. source income
  • In Puerto Rico are Puerto Rico source income
  • Anywhere else are foreign source income
Source Rules table with dividends row highlighted.