The 1099-DIV form is a tax document used by financial institutions to report dividends and distributions to the investor (you) and the Internal Revenue Service. When you own shares that pay dividends or a mutual fund that distributes capital gains, you will receive a 1099-DIV form from the IRS by mail. As with other tax forms, you will use the information contained in it to complete your annual tax return.
How does the 1099-DIV form work?
The 1099-DIV form reports dividends and income from distributions to both the IRS and the taxpayer. Its official name is “Dividends and Distributions.” You will receive a 1099-DIV form if you received dividends or mutual fund distributions that exceed $10 in the tax year. Your institution must send a copy of the form to both you and the IRS by the end of the tax year deadline.
Who uses the 1099-DIV form?
You will only receive a 1099-DIV form if your distributions occur in a taxable account. You will not receive the form for distributions from an Individual Retirement Account (IRA) or supplemental insurance or retirement or profit-sharing plans. You will receive a 1042-S form instead of a 1099-DIV if you are not a U.S. citizen (referred to by the IRS as a “Non-Resident Alien”) for tax purposes.
Other Types of 1099 Forms
The 1099-DIV form is one of many types of 1099 forms. The 1099 form is used to report income to the IRS that does not come from traditional employment. Here are some other common versions of 1099 forms that you may receive.
Where do you get a 1099-DIV form?
Most investors receive the 1099-DIV form by mail. However, many companies allow you to access your tax forms online, including the 1099-DIV form, so you may be able to find it by logging into your account.
What to do if you don’t receive a 1099-DIV form?
Contact your brokerage firm if you do not receive a 1099-DIV form by mail, and if you do not see it when logging into your account. Some companies may only send the form if your distributions exceed $10. Your dividends may be less than $10 for very low-yielding investments such as money market funds, especially when interest rates are low.
How to report the 1099-DIV form?
You do not need to submit the 1099-DIV form with your tax return. The institution has already prepared a copy for the IRS. However, you must report the information contained in it on your return. You can report it directly on Form 1040 if your income from dividends or interest is less than $1,500. You must report it on Schedule B if the distributions exceed $1,500.
Frequently Asked Questions (FAQs)
When is interest income reported on the 1099-DIV form?
Interest income is reported on the 1099-DIV form when it comes in the form of dividends or mutual fund distributions. It’s a form for investors, but not everyone will receive one. It depends on the amount of money you receive and whether it is reinvested or not.
How do you fill out the 1099-DIV form?
You do not need to fill out the 1099-DIV form. It is sent to you by your investment company or broker. You may also receive one in your investment file account, and you can download and print it or use it to file your tax return online.
Source: https://www.thebalancemoney.com/what-is-form-1099-div-5184848
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