Form 1099-DIV is used by banks and other financial institutions to report dividend income and other distributions such as from stock or capital gains.
Who receives Form 1099-DIV?
The IRS instructs that a 1099-DIV form must be completed 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 a liquidation.
There are some notable exceptions that are not required to be reported on a Form 1099-DIV. These include:
- Taxable dividend distributions from life insurance contracts and employee stock ownership plans.
- Substitute payments in lieu of dividends.
- 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.
However, there are or may be some exceptions to the exceptions. It is always best to consult your tax advisor if you are unsure about the reporting requirements. See the instructions for Form 1099-DIV by the IRS for more details.
Need More Information?
For more information on Form 1099-DIV filing, check out our other blog posts linked below:
- Gather information to prepare form(s).
- Check for accuracy.
- E-file and distribute form(s).
- Check the deadlines.
- Information Returns Guides: Part 1 and Part 2.
BoomTax, The Boom Post, and its affiliates do not provide tax, legal or accounting advice. This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, tax, legal or accounting advice. You should consult your own tax, legal and accounting advisors prior to engaging in any transaction.