What is Form 1099-DIV?

IRS Link to Form — Found Here

Form 1099-DIV is used to report dividend income and distributions from investments, and is usually filed by the company making the distribution.

The taxpayer will only use the form as a reference for reporting on other forms, such as the Schedule B if the distributions are over $1,500. Mutual funds are a common source of the 1099-DIV, since they have to distribute their gains to shareholders every year.

They will file the report with the IRS on the shareholder’s behalf, and will mail a copy of it to the shareholder. The shareholder will receive a 1099-DIV from any sources of passive investment income and distributions, even if the dividends or gains are reinvested.

The 1099-DIV will report how much of the distribution is considered capital gains, non-qualified dividends, or qualified dividends. The taxpayer does not need to file the form, only to keep a record of it and to use it to make sure that the numbers reported on other tax filings are correct.

If distributions are over $1,500 a year, the taxpayer will need to file a Schedule B to report the sources of all of the dividends or distributions. Interest income is reported separately on the 1099-INT.