Form 1099-DIV

Written By:
Paul Tracy
Updated August 5, 2020

What is Form 1099-DIV?

Financial institutions must create Form 1099-DIV for dividends and distributions of at least $10 in a tax year. Taxable dividend distributions from life insurance contracts and employee stock ownership plans are not subject to 1099-DIV reporting (they are reported using Form 1099-R). Substitute payments in lieu of dividends are also not reported on this form (they are reported on Form 1099-MISC). Dividend payments made to corporations, tax-exempt organizations, IRAs, Archer MSAs, health savings accounts, or government entities also do not count. Dividends paid to a 401(k) account will appear on the form (but that doesn't necessarily mean they're taxable). The rules for dividend reporting on real estate investments can be complicated; be sure to seek professional tax advice.

How Does Form 1099-DIV Work?

Let's say that John Doe has an account at Mutual Fund XYZ. The funds pay dividends of $1,500 per year. The mutual fund company creates and sends a Form 1099-DIV to John (and the IRS) reflecting his $1,500 of dividend income.

Why Does Form 1099-DIV Matter?

Form 1099-DIV is an IRS form used to report dividend income.