### Question
What does qualified cooperative dividend mean?


### Answer
**Qualified cooperative dividend** has the following meaning in *26 U.S.C. § 199A*:

> any patronage dividend (as defined in section 1388(a)), any per-unit retain allocation (as defined in section 1388(f)), and any qualified written notice of allocation (as defined in section 1388(c)), or any similar amount received from an organization described in subparagraph (B)(ii), which—


(A) is includible in gross income, and


(B) is received from—


(i) an organization or corporation described in section 501(c)(12) or 1381(a), or


(ii) an organization which is governed under this title by the rules applicable to cooperatives under this title before the enactment of subchapter T

#### Citation:
  - *26 U.S.C. § 199A*
  - Heading: **Subtitle A-Income Taxes > CHAPTER 1-NORMAL TAXES AND SURTAXES > Subchapter B-Computation of Taxable Income > PART VI-ITEMIZED DEDUCTIONS FOR INDIVIDUALS AND CORPORATIONS**

