The term Form 1099-DIV, Dividends and Distributions refers to a 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, although investors typically will not receive a 1099-DIV form if cumulative dividends are not greater than $10.
Key Points to Remember
- Form 1099-DIV, Dividends and Distributions is sent to investors who receive distributions from various investments during a calendar year.
- Banks, investment companies, and other financial institutions must provide taxpayers with the form by January 31 every year.
- The information from each 1099-DIV form should be reported either on a Schedule B form or directly on Form 1040.
- Only if the dividends and/or distributions they receive exceed $10, will taxpayers be sent the form.
- Financial institutions must send the form to both the taxpayer and the IRS.
Who Can File Form 1099-DIV?
Companies provide a copy of the form to both the investor and the IRS. Banks, investment companies, and other financial institutions are required to provide taxpayers with a 1099-DIV by January 31 each year.
The form includes the recipient’s name, address, and Social Security Number (SSN). It also has the payer’s name, address, identification number, and plan number. The right side of the form outlines some of the important figures the recipient will need, including total ordinary dividends, qualified dividends, and total capital gain distribution.
Most investors receiving Form 1099-DIV will have ordinary dividends, qualified dividends, or total capital gains. Other categories include:
- Unrecaptured section 1250 gains
- Section 1202 gains
- Collectibles gains
- Non-dividend distributions
- Federal income tax withheld
- Investment expenses
- Foreign tax paid
- Foreign country or U.S. possessions
- Cash liquidation distributions
- Non-cash liquidation distributions
- Exempt-interest dividends
- Specified private activity bond interest dividends
- State tax withheld
Investors may also be subject to Foreign Account Tax Compliance Act (FATCA) filing requirements for foreign accounts. This law requires U.S. citizens, both at home and abroad, to report their foreign account holdings in U.S. dollars.
Certain types of investment accounts, such as individual retirement accounts (IRAs), money purchase pension plans, profit-sharing plans, and various retirement accounts, are exempt from issuing a Form 1099-DIV.
How to File Form 1099-DIV
Form 1099-DIV has three copies. Copy A, in red, is for informational purposes only and should not be printed. Copy B has two parts that can be downloaded and printed; one is for the recipient, while the other is for the state tax department. This section, in black, satisfies the recipient’s needs.
Taxpayers are required to file the information from each Form 1099-DIV they receive on their annual tax form. This is done on a Schedule B form or directly on Form 1040. Taxpayers receiving more than $1,500 in taxable interest and/or ordinary dividends during the year should fill out Schedule B, accompanying the 1040 form.
Dividends are generally taxed at the investor’s income tax rate with a few exceptions, primarily qualified dividends, which meet certain criteria that allow them to be taxed at a lower capital gains tax rate.
The tax rate on capital gains may also vary depending on whether they are short-term or long-term; short-term capital gains are taxed at the ordinary income tax rate, whereas long-term capital gains are taxed at a lower rate.
Download Form 1099-DIV
Form 1099-DIV is available on the IRS website.
Frequently Asked Questions
What Is Form 1099-DIV?
Form 1099-DIV, Dividends and Distributions, is an IRS-required form used to report any dividends or distributions paid to taxpayers by banks and other financial institutions. This includes ordinary and qualified dividends, total capital gains, federal income tax withheld, and foreign tax paid, among other details.
Why Didn’t I Receive a Form 1099-DDIV Even Though I Was Paid Dividends?
You receive Form 1099-DIV only if you received dividends exceeding $10. If your dividend payments were more than this and you still haven’t received a form, contact the issuer for a replacement.
How Do I Report Form 1099-DIV?
Report the information found on Form 1099-DIV either on Schedule B or directly on Form 1040.
Related Terms: ordinary dividends, qualified dividends, capital gains, foreign tax, Schedule B, Form 1040.
References
- Internal Revenue Service. “Instructions for Form 1099-DIV: Specific Instructions”.
- Internal Revenue Service. “IRS Reminds Employers of January 31 Deadline for Form W-2, Other Wage Statements”.
- Internal Revenue Service. “Form 1099-DIV, Dividends and Distributions”.
- Internal Revenue Service. “January 31 Wage Statement Deadline Reminder for Employers”.
- Internal Revenue Service. “Summary of FATCA Reporting for U.S. Taxpayers”.
- Internal Revenue Service. “Instructions for Form 1099-DIV: Exceptions”.
- Internal Revenue Service. “About Schedule B (Form 1040), Interest and Ordinary Dividends”.
- Internal Revenue Service. “Topic No. 404 Dividends”.
- Internal Revenue Service. “Topic No. 409 Capital Gains and Losses”.
