What is Form 1099-DIV?

What is Form 1099-DIV?

Form 1099-DIV is a tax form issued by January 31st financial institutions, such as banks, to report dividend and distribution income you've received during the tax year from investments like stocks or mutual funds. Dividends are payments made by corporations to their shareholders, often representing a portion of the company's profits. The information on the form helps determine your taxable income and any potential tax credits or deductions related to your investments.

1099-DIV Reporting

A completed Form 1099-DIV will typically include the following information:

1. Your Name and Address: This ensures the form is sent to the correct recipient.
2. Payer's Name and Taxpayer Identification Number (TIN): This identifies the financial institution that issued the form.
3. Dividend Income: The total amount of dividends you received during the tax year.
4. Federal Income Tax Withheld: Any taxes that were withheld from your dividends.
5. Foreign Tax Paid: If you received dividends from foreign sources, this section shows any foreign taxes paid.
6. Box 1a: Ordinary Dividends: This box includes the total amount of ordinary dividends income.
7. Box 1b: reports the portion of box 1a that is considered to be qualified dividends.
8. Box 2a: Capital Gain Distributions: This box shows the portion of your dividend income that is considered a capital gain.
9. Box 3: Qualified Dividends: This box indicates dividends that may qualify for a reduced tax rate.
10. Box 4: Federal Income Tax Withheld: The amount of federal income tax withheld from your dividends.
11. Box 5: State/Local Income Tax Withheld: Any state or local taxes withheld from your dividends.
12. Box 6: Foreign Tax Paid: The amount of foreign taxes paid on your dividend income.
13. Box 7: Foreign Tax Paid-Creditable Amount: The portion of foreign taxes that may be claimed as a credit on your federal tax return.
14. Box 8: Section 199A Income: This box may be used to report income eligible for the Section 199A deduction.

Use Form 1099-DIV to File Your Taxes

During your annual tax process with Heard, you'll need to upload this form to accurately file your federal income tax return. Form 1099-DIV is typically issued by January 31st of the following year by your financial institution. If you are expecting but have yet to receive your form, please contact your bank.