1099DIV

Form 1099-DIV, U.S. Information Return, is used by payers of dividends and other distributions to report these amounts to the IRS and to recipients. Dividends are typically paid by corporations to their shareholders. This form is used to report various types of dividend income, including ordinary dividends, qualified dividends, capital gains distributions, and nondividend distributions.

The payer, usually a brokerage firm or a corporation, is responsible for issuing Form 1099-DIV to the recipient by January 31st of each year for the preceding tax year. The recipient then uses the information on this form to report their dividend income on their federal income tax return, typically on Schedule B, Interest and Ordinary Dividends, and Schedule D, Capital Gains and Losses, of Form 1040.

Key information reported on Form 1099-DIV includes the total ordinary dividends paid, any qualified dividends which may be taxed at lower capital gains rates, and capital gains distributions from mutual funds or real estate investment trusts. It also reports amounts that may be considered a return of capital, which can reduce the cost basis of an investment. Taxpayers should carefully review their Form 1099-DIV for accuracy and consult with a tax professional if they have any questions regarding the reporting of their dividend income.