If you get more than $10 in dividends from a bank or investment company, the IRS wants you to fill out The 1099-DIV Form. These amounts include stock dividends, money-market funds, and mutual funds. There are also some types of dividends that are exempt from the tax. Those include capital gains and certain dividends from money purchase pension plans.
Unlike other tax forms, you can’t print the 1099-DIV Form directly from the IRS website. You can, however, download the document and print it at home. This is the preferred method of filing because it can be processed quickly and is an easy way to keep track of your status.
Do I need to report 1099-DIV?
The 1099-DIV Form will be sent to you if you own dividend-paying stocks, ETFs, or mutual funds. The form shows the total amount of ordinary dividends and capital gain distributions you received during the tax year.
Besides letting you know about your dividend income, the form will also let you know about the federal and state taxes you’ve paid. The information you need on the form includes the payer’s name and address, the payment date, and the amount. The 1099-DIV Form is a relatively simple form, but it contains a lot of valuable information. This document can help you file the right type of tax return for your situation.
Before completing your tax return, you need to determine whether you need to use the form. For instance, you may be able to report the interest you receive on your savings account directly on your 1040 Form. If you need more clarification, you can always consult a professional.
In general, you will receive a Form 1099-DIV for any payments you receive that are over $10.
1099-DIV Form Instructions
The 1099-DIV Form is made up of 18 boxes. Each box has a different function. Some boxes may have information reported, such as the total amount of the ordinary dividends. Others may be blank. However, each box can help you determine whether or not to report.
- Box 1a: Dividends, including dividends from money market funds, net short-term capital gains from mutual funds, and other distributions on the stock.
- Box 1b: Reduced capital gains-qualified dividends
- Box 2a: Capital gain distributions from a regulated investment company or real estate investment trust
- Box 2b: Also reflects amounts included in box 2a – the amounts in those boxes must also be reported on Schedule D.
- Box 3: Reports the part of a distribution that is nontaxable because it is a return of your cost or other basis.
- Box 4: The amount of backup withholding.
- Box 5: Share of expenses of a nonpublicly offered regulated investment company (RIC).
- Box 6: Any foreign tax paid on interest.
- Box 7: Any foreign tax paid and reported in box 6 will be here.
- Boxes 8 and 9: Cash and noncash liquidation distributions. They only apply to corporations in partial or complete liquidation.
- Box 10: Exempt-interest dividends from a mutual fund or other RIC
- Box 11: Exempt-interest dividends subject to the alternative minimum tax (AMT).
- Box 12-14: Check that information if state tax was withheld.
The remaining boxes are optional and should be filled based on the filer’s status.