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Form 1099-DIV: Dividends and Distributions

tax form, United States

Written byNancy Ashburn

Fact-checked byThe Editors of Encyclopaedia Britannica

Illustration of a decorative 1099-DIV tax form labeled Copy B, featuring placeholder text and sample fields with a green patterned background.

Use Form 1099-DIV to report dividends, capital gain distributions, and more.

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If you received more than $10 in dividends or capital gain distributions during the tax year, your brokerage, mutual fund company, or other financial institution generally sends you Form 1099-DIV.

Dividends are payments some companies make to shareholders, typically as a way of sharing a portion of their profits. Form 1099-DIV is one of several Forms 1099 used to report different types of income. It’s used for dividends and capital gain distributions. It also reports capital gain distributions from mutual funds, exchange-traded funds (ETFs), and real estate investment trusts (REITs).

Key boxes on Form 1099-DIV

Box 1a: Total ordinary dividends, which are generally taxable and may also need to be reported on Schedule B.
Box 1b: Qualified dividends, the portion of your ordinary dividends that may be eligible for the lower long-term capital gains tax rates.
Boxes 2a through 2d: Capital gain distributions and related information that may need to be reported on Schedule D.
Box 3: Nondividend distributions. These payments are generally treated as a return of part of your original investment rather than as taxable income. Instead of being taxed right away, they generally reduce your cost basis (the amount you originally invested), which may affect your taxes if you later sell the investment.
Box 4: Federal income tax withheld from your dividend or distribution payments.
Box 5: Section 199A dividends, which may qualify for the qualified business income (QBI) deduction.

Using Form 1099-DIV

Use Form 1099-DIV to report dividend income and capital gain distributions on your federal income tax return. Even if some amounts reported on the form aren’t immediately taxable, such as nondividend distributions, keep Form 1099-DIV with your tax records, because it may affect your taxes in the future.

This article was most recently revised and updated by Nancy Ashburn