What is form 1099-DIV?
A form sent to investors by investment fund companies. The form is a record of all taxable capital gains and dividends paid to an investor, including those that have been re-invested in a given taxation year. The amounts stated on the form represent the amounts that fund companies are attributing to each investor's investment return for the year and reporting to the IRS. Investors use Form 1099-DIV to help report income received from investments on their tax return each year. In other words, Form 1099-DIV reports the ordinary dividends, total capital gains, qualified dividends, non-taxable distributions, federal income tax withheld, foreign tax paid and foreign source income from each investment account held by a fund company. Forms are not sent to investors who received or re-invested a total of less than $10 per fund.
Who is supposed to file form 1099-DIV?
File Form 1099-DIV, Dividends and Distributions, for each person:
- To whom you have paid dividends (including capital gain dividends and exempt-interest dividends) and other distributions on stock of $10 or more,
- For whom you have withheld and paid any foreign tax on dividends and other distributions on stock,
- For whom you have withheld any federal income tax on dividends under the backup withholding rules, or
- To whom you have paid $600 or more as part of liquidation
If you make a payment that may be a dividend but you are unable to determine whether any part of the payment is a dividend by the time you must file Form 1099-DIV, the entire payment must be reported as a dividend.
Exceptions to form 1099-DIV filing
You are not required to report on Form 1099-DIV the following:
- Taxable dividend distributions from life insurance contracts and employee stock ownership plans are reported on Form 1099-R, Distributions From Pensions, Annuities, Retirement or Profit-Sharing Plans, IRAs, Insurance Contracts, etc.
- Substitute payments in lieu of dividends. For payments received by a broker on behalf of a customer in lieu of dividends as a result of a loan of a customer's securities,
- Payments made to certain payees including a corporation, tax-exempt organization, any IRA, Archer MSA, health savings account (HSA), U.S. agency, state, the District of Columbia, U.S. possession, or registered securities or commodities dealer.
- Certain distributions commonly referred to as “dividends” are actually interest and are to be reported on Form 1099-INT. These include so-called “dividends” on deposit or on share accounts in cooperative banks, credit unions, domestic building and loan associations, domestic and federal savings and loan associations, and mutual savings banks.
For more information on your 1099 misc filing instructions visit:https://www.irs.gov/instructions/i1099div/index.html