What is Form 1099-DIV?
Form 1099-DIV,Dividends and Distributions, is an Internal Revenue Service (IRS) form sent by banks and other financial institutions to investors who receive dividends and distributions from any type of investment during a calendar year. Investors can receive multiple 1099-DIVs. Each 1099-DIV form should be reported on an investor’s tax filing.
Distributions, such as dividends, capital gain distributions, or nontaxable distributions, that were paid on stock and liquidation distributions (including distributions reported pursuant to an election described in Regulations section 1.1471-4(d)(5)(i)(A) or reported as described in Regulations section 1.1471-4(d)(2)(iii)(A)).
The 1099-DIV should also be filed for each person for whom:
- Paid more than $10 in dividends (including capital gains dividends and exempt interest dividends)
- Any foreign tax on dividends and other distributions on stock have been withheld and paid
- Any federal income tax on dividends under the backup withholding rules have been withheld $600 or more has been paid as part of a liquidation
Am I required to file a Form 1099 or other information return?
If you made or received a payment during the calendar year as a small business or self-employed (individual), you are most likely required to file an information return to the IRS.
Who is not required to file information returns?
You are not required to file information return(s) if any of the following situations apply:
- You are not engaged in a trade or business.
- You are engaged in a trade or business and the payment was made to another business that is incorporated, but was not for medical or legal services or the sum of all payments made to the person or unincorporated business is less than $600 in one tax year.
Do not file Copy A of information returns downloaded from the IRS website. The official printed version of the IRS form is scannable, but the online version of it, printed from the website, is not. A penalty may be imposed for filing forms that cannot be scanned.
Three copies must be filled out.
- Submit Copy A to the State Tax Department.
- Submit Copy B to the recipient of the distribution.
- Submit Copy C to payer.
How to fill out Form 1099-DIV?
The estimated time to complete the form is 24 minutes. Before filling out the form, make sure that the information given is correct. Write as legible as possible to avoid errors and the possible need for corrections.
There are two sections.
On the left side of the form:
- Provide the name, address, and taxpayer identification number (TIN) of the payer.
- Enter the name, address, and TIN of the recipient.
- Add the account number, for the payer to distinguish your account.
On the right side provide the following:
- Shows total ordinary dividends that are taxable. Include this amount on the “Ordinary dividends” line of Form 1040 or 1040-SR. Also report it on Schedule B (Form 1040), if required.
- Shows the portion of the amount in box 1a that may be eligible for reduced capital gains rates. See the Instructions for Forms 1040 and 1040-SR for how to determine this amount and where to report.
- The amount shown may be dividends a corporation paid directly to you as a participant (or beneficiary of a participant) in an employee stock ownership plan (ESOP). Report it as a dividend on your Form 1040 or 1040-SR but treat it as a plan distribution, not as investment income, for any other purpose.
- Shows total capital gain distributions from a regulated investment company (RIC) or real estate investment trust (REIT). See How To Report in the Instructions for Schedule D (Form 1040). But, if no amount is shown in boxes 2c, 2d, 2e, and 2f and your only capital gains and losses are capital gain distributions, you may be able to report the amounts shown in box 2a on your Form 1040 or 1040-SR rather than Schedule D. See the Instructions for Forms 1040 and 1040-SR.
- Shows the portion of the amount in box 2a that is unrecaptured section 1250 gain from certain depreciable real property. See the Unrecaptured Section 1250 Gain Worksheet in the Instructions for Schedule D (Form 1040).
- Shows the portion of the amount in box 2a that is section 1202 gain from certain small business stock that may be subject to an exclusion. See the Schedule D (Form 1040) instructions.
- Shows the portion of the amount in box 2a that is 28% rate gain from sales or exchanges of collectibles. If required, use this amount when completing the 28% Rate Gain Worksheet in the Instructions for Schedule D (Form 1040).
- Shows the portion of the amount in box 1a that is section 897 gain attributable to disposition of U.S. real property interests (USRPI).
- Shows the portion of the amount in box 2a that is section 897 gain attributable to disposition of USRPI.
- Note: Boxes 2e and 2f apply only to foreign persons and entities whose income maintains its character when passed through or distributed to its direct or indirect foreign owners or beneficiaries. It is generally treated as effectively connected to a trade or business within the United States. See the instructions for your tax return.
- Shows a return of capital. To the extent of your cost (or other basis) in the stock, the distribution reduces your basis and is not taxable. Any amount received in excess of your basis is taxable to you as capital gain. See Pub. 550.
- Shows backup withholding. A payer must backup withhold on certain payments if you did not give your TIN to the payer. See Form W-9 for information on backup withholding. Include this amount on your income tax return as tax withheld.
- Shows the portion of the amount in box 1a that may be eligible for the 20% qualified business income deduction under section 199A. See the instructions for Form 8995 and Form 8995-A.
- Shows your share of expenses of a non publicly offered RIC, generally a non publicly offered mutual fund. This amount is included in box 1a.
- Shows the foreign tax that you may be able to claim as a deduction or a credit on Form 1040 or 1040-SR. See the Instructions for Forms 1040 and 1040-SR.
- This box should be left blank if a RIC reported the foreign tax shown in box 7.
Boxes 9 and 10.
- Show cash and noncash liquidation distributions.
- Shows exempt-interest dividends from a mutual fund or other RIC paid to you during the calendar year. See the Instructions for Forms 1040 and 1040-SR for where to report. This amount may be subject to backup withholding. See Box 4 above.
- Shows exempt-interest dividends subject to the alternative minimum tax. This amount is included in box 11. See the Instructions for Form 6251.
- State income tax withheld reporting boxes.
Where to file Form 1099-DIV?
All information returns filed on paper will be filed with only three Internal Revenue Service Centers: Austin, TX; Kansas City, MO; and Ogden, UT.
If your legal residence or principal place of business, or principal office or agency, is outside the United States, use the following address.
Department of the Treasury
Internal Revenue Service Center
Austin, TX 73301