FAQ About 1099-DIV
What is a 1099-DIV and who needs to file this form?
Form 1099-DIV is used to report distributions, such as dividends, capital gain distributions, or nontaxable distributions, that were paid on stock and liquidation distributions. A 1099-DIV must be filed by any individual or entity that has:
- Paid dividends (including capital gain dividends) and other distributions on stock of $10 or more to an individual
- Withheld and paid any foreign tax on dividends and other distributions on stock for an individual
- Withheld any federal income tax on dividends under the backup withholding rules for an individual
- Paid $600 or more as part of a liquidation to an individual
What is the filing process for 1099-DIV?
Complete the information on Form 1099-DIV following the detailed instructions provided by the Internal Revenue Service. Create and distribute the following copies:
- Copy A – submit to the Internal Revenue Service (on paper or via electronic filing)
- Copy B – submit to the recipient for his/her federal income tax return
- Copy C – retain for the payer’s records
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