What Is a 1099-DIV Tax Kind? How It Works and What to Do

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A 1099-DIV tax kind is a report that somebody paid you dividends. Right here’s how the 1099-DIV works.

Someday in February, you would possibly obtain a 1099-DIV tax kind (or multiple) within the mail. You should grasp on to it as a result of it might have a huge impact in your tax life.

What’s a 1099-DIV tax kind?

A 1099-DIV tax kind is a report that somebody — an organization or different entity — paid you dividends. When you earned greater than $10 in dividends from an organization or different entity, you’ll obtain a 1099-DIV.
The 1099-DIV is a standard sort of IRS Kind 1099, which is a report that an entity or individual — not your employer — gave or paid you cash.
You would possibly obtain a 1099-DIV tax kind out of your brokerage agency since you earned dividends in your investments.
A Kind 1099-DIV could have your Social Safety quantity or taxpayer identification quantity on it, which implies the IRS will know you’ve obtained dividends — and it’ll know when you don’t report that revenue in your tax return.
Merely receiving a 1099-DIV tax kind doesn’t essentially imply you owe taxes on that cash. You may need deductions that offset the revenue, for instance, or some or all of it is perhaps sheltered primarily based on traits of the asset that generated it. In any case, keep in mind: The IRS is aware of about it.

What do I do with a 1099-DIV tax kind?

You utilize your IRS Kind 1099-DIV to assist work out how a lot revenue you obtained throughout the yr and what sort of revenue it was. You’ll report that revenue in other places in your tax return, relying on what sort of revenue it was.

When you need assistance estimating how dividend revenue on a Kind 1099-DIV may have an effect on your tax invoice, take a look at our free tax calculator.

What does my 1099 tax kind imply for my tax state of affairs?

When you obtained a Kind 1099-DIV from a brokerage agency or different entity as a result of you’ve got investments or accounts that earned dividends, you may additionally get just a few different tax types within the mail.


You would possibly obtain a 1099-CAP when you maintain shares of an organization that was acquired or underwent a giant change in capital construction and you bought money, inventory or different property consequently.


When you earned greater than $10 in curiosity from a financial institution, brokerage or different monetary establishment, you’ll obtain a 1099-INT.

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You would possibly obtain Kind 1099-OID when you purchased bonds, notes or different monetary devices at a reduction to the face worth or redemption worth at maturity. Usually, the instrument will need to have a maturity of multiple yr.


When you belong to a co-op and obtained no less than $10 in patronage dividends, anticipate to see Kind 1099-PATR in your mailbox.


When you received distributions from a pension, retirement plan, profit-sharing program, IRA or annuity, you would possibly obtain a 1099-R. (Keep in mind, many retirement plans are tax-advantaged, so this type is perhaps easy record-keeping on behalf of the IRS.) When you took a mortgage out of your retirement plan, you may need to deal with it as a distribution, which implies it is perhaps on this type, too, in addition to everlasting and whole incapacity funds beneath life insurance coverage contracts.

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