Form 1099-DIV: Dividends and Distributions

A 1099-DIV, officially titled "Dividends and Distributions," is an IRS tax form used by banks and financial institutions to report the dividends and other distributions paid to you throughout the year. These distributions can come from various sources, including:

  1. Stocks
  2. Mutual funds
  3. Real Estate Investment Trusts (REITs)
  4. S corporations

Who Receives a 1099-DIV?

  • You'll receive a 1099-DIV if you received dividends or distributions exceeding $10 in a calendar year.
  • If the amount is less than $10, the institution isn't obligated to send you a form.
  • You'll typically receive the form by January 31st of the following year.

What Information Does a 1099-DIV Contain?

This form includes various boxes with specific details about your dividends and distributions. Here's a breakdown of some key boxes:

  • Box 1a & 1b: Report the total amount of ordinary dividends and capital gain distributions, respectively.
  • Box 2a: Shows any non-cash (like stock) distributions you received.
  • Box 3: Reports any return of capital, which reduces your cost basis in the investment (usually not taxable).
  • Box 4: Indicates any backup withholding tax taken if you didn't provide your Taxpayer Identification Number (TIN).
  • Box 6: Shows exempt-interest dividends that might be subject to the alternative minimum tax.
  • Boxes 14-16: Report any state income tax withheld on your distributions.

What Do You Do With a 1099-DIV?

  • You won't directly file the 1099-DIV with your tax return. However, the information it contains is crucial for accurate tax reporting.
  • Use the details on your 1099-DIV to report your dividends and distributions on Schedule B (if you have significant investment income) or directly on Form 1040.
  • Consulting a tax professional is recommended if you have any questions about how to handle your 1099-DIV information in your tax return.