Who Receives a Form 1099-DIV?

What is Form 1099-DIV? This form 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 Form 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.

Exceptions

There are some notable exceptions that are not required to be reported on this form. 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 IRS instructions for more details on exceptions.

What information is reported on Form 1099-DIV?

The left side of the form has boxes for the names, addresses, and TINs for both the Payer and the Recipient. It also has a checkbox for both the FATCA filing requirement and 2nd TIN notice.

The right side of the form has boxes for a variety of dividends and distributions amounts, and federal and state withholding amounts.

Review what information is required using our companion article Gathering Information to Prepare Form 1099-DIV.

Conclusion

Form 1099-DIV is an official IRS document to report dividend income and other distributions, such as stock or capital gains. This form is sent to the IRS, any applicable states, and the recipients.

Download our guide to understanding Form 1099-DIV to become a master on these forms.

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