Form 1099-DIV Instructions

What is IRS Form 1099-DIV?

Form 1099-DIV is an information return issued by banks and other financial institutions to report dividends and distributions received by an investor within a calendar year.

Investors receive a Form 1099-DIV from each institution where they have investments that paid out dividends or other distributions exceeding $10 during the year. If investors have accounts at multiple institutions, they may receive several forms.

The information provided on Form 1099-DIV is used by investors to accurately report the dividends and distributions on their tax return.

Who needs to file Form 1099-DIV?

As a payer, you must file Form 1099-DIV for each recipient if any of the following situations occur:

• You paid dividends totaling $10 or more to a recipient. This includes capital gain dividends, exempt-interest dividends, and other distributions on stock ownership.
• You withheld and paid any foreign tax on dividends or other stock distributions on behalf of a recipient.
• You withheld federal income tax on dividends paid to a recipient, as required by the backup withholding rules.
• You paid $600 or more in money or other property as part of a liquidation.

If any of these conditions apply, you are legally obligated to file Form 1099-DIV to report the dividend payments or distributions made to that recipient during the tax year.

When is the Form 1099-DIV due date?

Payers must be aware of two important deadlines related to Form 1099-DIV:

Filing deadline with the IRS

The deadline for payers to file Form 1099-INT with the IRS depends on the filing method:

• Electronic filing deadline: March 31, 2025
  If you are e-filing Form 1099-DIV with the IRS, the deadline is March 31, 2025 of the year following the tax year for which the form is being issued.

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• Paper filing deadline: February 28, 2025
  If you are filing Form 1099-DIV with the IRS using traditional paper methods, the deadline is earlier – February 28, 2025 of the year following the tax year for which the form is being issued.

Recipient copies deadline: January 31, 2025

Payers are required to provide copies of Form 1099-DIV to the recipients by January 31st of the year following the tax year for which the form is being issued. This ensures that recipients have the necessary information to accurately report their dividends and distributions when filing their tax returns.

Failure to meet these deadlines or providing inaccurate information on Form 1099-DIV may result in penalties imposed by the IRS. Payers should take appropriate measures to ensure timely and accurate filing and distribution of Form 1099-DIV to avoid any potential penalties.

Form 1099-DIV penalty

If you miss filing Form 1099-DIV within the deadline, the IRS will impose a penalty. Here's the Form 1099-DIV penalty rates:

Form 1099-DIV Instructions - How to fill out?

Let's see line-by-line instructions on how to fill out Form 1099-DIV.

Payer details

Enter your name or business name, complete address, and TIN (SSN if you're an individual; EIN if you're a business)

Recipient details

Enter the recipient’s name, complete address, and TIN (SSN for an individual; EIN for a business).

• Account number: You must provide the account number in these two situations:
  1. You have multiple accounts for the same recipient, and you are filing more than one Form 1099-DIV for that recipient.
  2. You checked the "FATCA filing requirement" box.
• 2nd TIN not: If the IRS has notified you two times within the last 3 years that the payee provided an incorrect TIN, you can enter an "X" in this box. By doing so, the IRS will stop sending you further notices about this account's TIN.

Box 1a: Total Ordinary Dividends

Enter the total amount of ordinary dividends received, including:

• Dividends from regular stocks and money market funds
• Net short-term capital gains from mutual funds
• Other distributions on stocks
• Reinvested dividends
• Section 404(k) dividends paid directly from the corporation

The amount in Box 1a includes the amounts reported in Boxes 1b, 2e, and the recipient's share of investment expenses from Box 6.

Box 1b: Qualified Dividends

Enter the portion of the dividends in box 1a that qualifies for the reduced capital gains rates.

Box 2a–-2f

Box 2a: Total Capital Gain Distr.

Enter total capital gain distributions (long-term). Include all amounts shown in boxes 2b, 2c, 2d, and 2f.

Box 2b: Unrecap. Sec. 1250 Gain.

Enter any amount included in box 2a that is an unrecaptured section 1250 gain from certain depreciable real property.

Box 2c: Section 1202 Gain

Enter any amount included in box 2a that is a section 1202 gain from certain qualified small business stock.

Box 2d: Collectibles (28%) Gain

Enter any amount included in box 2a that is a 28% rate gain from sales or exchanges of collectibles.

Box 2e: Section 897 Ordinary Dividends

Enter any amount included in box 1a that is section 897 gain from dispositions of USRPI.

Box 2f: Section 897 Capital Gain

Enter any amount included in box 2a that is section 897 gain from dispositions of USRPI.

Box 3: Nondividend Distributions

Enter non-dividend distributions, if determinable.

Box 4: Federal Income Tax Withheld

Enter any federal income tax that was withheld from the payments reported.

Box 5: Section 199A Dividends

Enter the qualified REIT dividends paid by a REIT or section 199A dividends paid by a RIC to the recipient. This amount is included in the amount reported in box 1a.

Box 6: Investment Expenses

Enter the recipient's proportional share of certain expenses that a non-publicly offered regulated investment company (RIC) can deduct when computing its taxable income.

This amount must be included in the recipient's gross income under section 67(c). It should also be added to the amount reported in Box 1a (Total Ordinary Dividends).

DO NOT include any investment expenses in Box 1b.

Box 7: Foreign Tax Paid

Enter foreign tax paid on dividends and other distributions on stock. A RIC must report only the amount it elects to pass through to the recipient. This amount must be reported in U.S. dollars.

Box 8: Foreign Country or U.S. Possession

Enter the name of the foreign country or U.S. territory for which the foreign tax was paid. Only applicable if you have reported in box 7.

Box 9: Cash Liquidation Distributions

Enter cash distributed as part of a liquidation.

Box 10: Noncash Liquidation Distributions

Enter noncash distributions made as part of a liquidation. Show the fair market value as of the date of distribution.

Box 11: FATCA filing requirement checkbox

Check this box if you're

• a U.S. payer reporting on Form(s) 1099, including reporting distributions in boxes 1 through 3 and 9, 10, 12, and 13 on this Form 1099-DIV, to fulfill your obligation for a U.S. account under chapter 4 of the Internal Revenue Code (Regulations section 1.1471-4(d)(2)(iii)(A)).
• an FFI reporting payments to a U.S. account based on an election in Regulations section 1.1471-4(d)(5)(i)(A).

Box 12: Exempt-Interest Dividends

Enter the amount of exempt-interest dividends received from a mutual fund or other RIC. These are dividends derived from tax-exempt interest income sources.

Also include in Box 12 any specified private activity bond interest dividends, which should additionally be reported separately in Box 13.

Box 13: Specified Private Activity Bond Interest Dividends

Box 14–16: State information

Box 14: Enter the 2-letter state abbreviation for the state

Box 15: Enter the state identification number

Box 16: Report any state income tax withheld from the payment

How to File Form 1099-DIV

You can file Form 1099-DIV, which reports dividends and distributions, either electronically or by mail.

Electronic Filing (E-filing)

The IRS recommends e-filing Form 1099-DIV, as it is an efficient and straightforward process. E-filing also offers the advantage of receiving notifications promptly after the IRS processes your submission.

To e-file Form 1099-DIV, you can choose an IRS-authorized e-file service provider, such as TaxZerone.

TaxZerone streamlines the e-filing process, allowing you to complete it within minutes. Here's how it works:

1. Fill out the form with the required information.
2. Review the information for accuracy.
3. Transmit the form to the IRS electronically.
4. Provide the recipient's copy of the form.

By following these simple steps, you can ensure that your Form 1099-DIV is filed electronically in a timely and efficient manner.

Paper filing

If you prefer to file Form 1099-DIV through traditional paper methods, follow these steps:

1. Download and print Form 1099-DIV from the IRS website.
2. Complete the required fields, including the recipient's name, address, and Taxpayer Identification Number (TIN). Also, provide your business name, address, and TIN.
3. Mail the completed paper form to the IRS at the address specified in the 1099 instructions.
4. Send a copy of the 1099-DIV to the recipient by January 31st, allowing them to report the interest income accurately on their tax return.

Important considerations for paper filing:

• Mail the forms several weeks before the deadline to ensure timely arrival at the IRS.
• You are required to provide a copy of the 1099-DIV to the recipient for accurate tax reporting on their part.
• Paper filing involves printing, mailing, and tracking forms, which can be time-consuming and less efficient compared to electronic filing.
• As an alternative, you can choose to file Form 1099-DIV electronically for faster processing and delivery, reducing the risk of delays or lost forms.

Where to send Form 1099-DIV - Mailing address

If you prefer paper filing, the mailing address for Form 1099-DIV varies depending on your business location. Below is a table summarizing the mailing address for Form 1099-DIV:

How to E-File Form 1099-DIV with TaxZerone

Before initiating the e-filing process for Form 1099-DIV, it's essential to have all the necessary information ready to ensure a smooth and efficient filing experience. Here's what you'll need to gather:

Required Information for Filing Form 1099-DIV:

• Business Details (name, address, and TIN)
• Recipient Details (name, address, and TIN)
• Dividends and distributions paid
• Federal income tax withheld
• State income tax withheld

Once you have collected all the required information, you can proceed with the e-filing process using TaxZerone in three simple steps:

Step 1: Complete Form 1099-DIV
Open the Form 1099-DIV and fill out the necessary fields with the information you have gathered, including the payer's details, the recipient's details, dividends paid, and any federal income tax withheld.

Step 2: Review and Transmit the Return
Carefully review all the information you have entered to ensure accuracy. Once you have verified the details, transmit the completed Form 1099-DIV to the IRS electronically through TaxZerone's secure platform.

Step 3: Provide the Recipient Copy
After successfully transmitting the form to the IRS, send a copy of the completed Form 1099-DIV to the recipient. This will allow them to report the dividend income accurately on their tax return.

Benefits of E-Filing Form 1099-DIV with TaxZerone

When you choose to e-file Form 1099-DIV with TaxZerone, you can enjoy several advantages that streamline the filing process and ensure compliance with IRS requirements. These benefits include:

• IRS Form Validations: TaxZerone's system checks your returns for potential errors or missing information, ensuring accuracy before submission.
• Email Recipient Copies: You can conveniently send recipient copies of Form 1099-DIV via email, eliminating the need for manual mailing.
• Secure Portal Access (ZeroneVault): Recipients can access their return copies anytime, anywhere, through the secure ZeroneVault portal, providing greater convenience and accessibility.
• Competitive Pricing: TaxZerone offers industry-leading pricing, with rates as low as $0.59 per form, making it an affordable solution for businesses of all sizes.

By leveraging TaxZerone's e-filing solution, you can streamline the Form 1099-DIV filing process, ensuring accuracy, efficiency, and compliance with IRS requirements. You can save time, reduce the risk of errors, and provide a better experience for your recipients.