What Is Form 1099-DIV?

Form 1099-DIV is filed by banks and financial institutions to report dividends and other distributions to taxpayers.

What is Form 1099-DIV?

Form 1099-DIV is an IRS form that reports dividend and capital-gain distributions paid to individuals in a year. It is filed by financial institutions like banks, corporations, mutual funds, and REITs for payments that exceed the 1099-DIV $10 threshold or $600 or more for a liquidation. It also reports foreign tax or federal income tax withheld under backup withholding rules, regardless of the amount.

Who Should File 1099-DIV?

File a 1099-DIV to people who:

• Pay dividends (capital gain dividends and exempt-interest dividends) and other distributions of stock of more than $10
• You have withheld and paid foreign tax on dividends and other distributions
• Have withheld federal income tax on dividends
• You have paid more than $600 as part of the liquidation

If you are unable to determine if a payment is a dividend by the time you file Form 1099-DIV, the entire payment must be reported as a dividend.

Exceptions For Form 1099-DIV

You are not required to report the following on 1099-DIV:

• Taxable dividend distributions from life insurance contracts and employee stock ownership plans
• Substitute payments in lieu of dividends

Payments made to 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.

Not Qualified Dividends

• Dividends the recipient received on any share of stock held for less than 61 days during the 121-day period that began 60 days before the ex-dividend date
• Dividends attributable to periods totaling more than 366 days that the recipient received on any share of preferred stock held for less than 91 days during the 181-day period that began 90 days before the ex-dividend date
• Dividends that relate to payments that the recipient is obligated to make considering short sales or positions in similar or related property
• Dividends paid by a Regulated Investment Company (RIC) that are not treated as qualified dividend income under section 854
• Dividends paid by a real estate investment trust (REIT) that are not treated as qualified dividend income under section 857(c)
• Deductible dividends paid on employer securities

1099-DIV Deadlines

Following are the due dates for each filing type. Forms must be transmitted to the IRS before the deadline.

• Recipient copy > January 31
• IRS eFiling > March 31
• IRS Paper Filing > February 28

If a due date falls on a weekend or holiday, it will be due the next business day.

How to eFile the 1099-DIV Form for the tax year 2025?

E-file 1099 div step-by-step using the following steps:

1. Upload Data

Start by importing tax filing data into Tax1099 via CSV or Excel upload or accounting-software export. 

2. Validate Data 

Verify the taxpayer data using our real-time TIN-Match which verified name and TIN combination with IRS records. This gives you enough time to fix any incorrect issue before submission. 

3. Submit & E-File 

Once all the information is verified, transmit 1099-DIV directly to the IRS via Tax1099 platform. You can also e-deliver copies of the form to recipients using our eDelivery portal.

Tax1099 is the go-to source for your 1099 filings. You can eFile Form 1099-DIV Online for the tax year 2025 using Tax1099. Don’t wait for the deadline – eFile Now!

Real-Life Reporting Situations When Filing 1099-DIV 

1. If a taxpayer receives a $30 in ordinary dividends from a mutual fund or ETF invested in U.S. stocks, it has to be reported on Box 1a of 1099-DIV since the amount meets the 1099-DIV $10 threshold.  
2. If a taxpayer receives $1,200 in qualified dividends from a U.S. company whose stock they own, it needs to be reported on Box 1a and 1b of 1099-DIV. Box 1a shows the total dividend amount and Box 1b shows the portion that is qualified. 
3. If $2,500 capital-gain distribution from a mutual fund was distributed to a shareholder, the amount must be reported on Box 2a, 1099-DIV.  
4. If a shareholder received a $650 liquidating distribution from a company shutting down, the amount must be reported on Box 9, 1099-DIV.  
5. If an individual received $500 in dividends from a foreign stock, and $75 was withheld as foreign tax, the total dividend amount is reported on Box 1a. The foreign tax paid has to be reported on Box 7 of 1099-DIV.  

FAQs  

1. Do I need to send a 1099-DIV for dividends under $10? 

Ans: Form 1099-DIV is required if total dividends paid to a recipient reach $10 or more in a year. However, investors must still report all dividend income on their tax returns. 

2. Can one payee get both 1099-DIV and 1099-INT? 

Ans: Yes, since dividend income and interest income are reported on separate forms,1099-DIV and 1099-INT respectively, a payee can get both forms. 

3. What triggers backup withholding in Box 4? 

Ans: Backup withholding is triggered in Box 4 if there is a missing or incorrect TIN. 

4. Are DRIP (dividend-reinvestment) amounts reportable? 

Ans: Yes, DRIP or Dividend Reinvestment Plan are considered taxable income and must be reported on Form 1099-DIV. 

5. How do I correct a wrong amount after sending 1099-DIV to the IRS? 

Ans: To correct a wrong amount, all you need to do is send a new 1099-DIV marked “CORRECTED,” make the corrections, and retransmit to the IRS. You also need to resend copies to recipients.  

6. Do IRA dividends need a 1099-DIV?

Ans: No, IRA Dividends are not reported on Form 1099-DIV.