Instructions for Form 1099-DIV (01/2022) | Internal Revenue Service

Specific Instructions

file Form 1099-DIV for each person :

  • To whom you have paid dividends ( including capital amplification dividends and exempt-interest dividends ) and other distributions valued at $ 10 or more in money or other property ,
  • For whom you have withheld and paid any foreign tax on dividends and early distributions on sprout,

  • For whom you have withheld any federal income tax on dividends under the accompaniment withholding rules, or
  • To whom you have paid $ 600 or more in money or other property as part of a extermination .

Dividends

If you make a payment that may be a dividend but you are ineffective to determine whether any contribution of the payment is a dividend by the time you must file Form 1099-DIV, the stallion requital must be reported as a dividend. See the regulations under section 6042 for a definition of dividends .

Exceptions

You are not required to report on Form 1099-DIV the be .

  1. taxable dividend distributions from life policy contracts and employee broth ownership plans. These are reported on Form 1099-R .
  2. substitute payments in stead of dividends. For payments received by a broke on behalf of a customer in stead of dividends as a leave of a loanword of a customer ‘s securities, see the instructions for box 8 under specific Instructions for Form 1099-MISC in the stream Instructions for Forms 1099-MISC and 1099-NEC .

    . This is an Image: taxtip.gif substitute payments in stead of dividends may be reported on a composite statement to the recipient role with Form 1099-DIV. See Pub. 1179 ..

  3. Payments made to certain payees. These include a pot, tax-exempt organization, IRA, Archer MSA, health savings account ( HSA ), U.S. agency, state, District of Columbia, U.S. possession, or register securities or commodities principal .

. This is an Image: caution.gif Certain distributions normally referred to as “ dividends ” are actually sake and are to be reported on Form 1099-INT. These include alleged dividends on deposit or on parcel accounts in concerted banks, recognition unions, domestic build and loan associations, domestic and federal savings and loanword associations, and common savings banks..

Qualified Dividends

Except angstrom provided below, qualified dividends are dividends paid during the tax class from domestic corporations and dependent extraneous corporations .
Exceptions.
The pursue dividends are not restricted dividends .

  • Dividends the recipient role 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. See the instructions for box 1b, by and by. When determining the number of days the recipient held the stock, you can not count certain days during which the recipient role ‘s risk of loss was diminished. The ex-dividend date is the first date following the declaration of a dividend on which the buyer of a stock is not entitled to receive the following dividend payment. When counting the number of days the recipient role held the stock, include the day the recipient disposed of the neckcloth but not the day the recipient acquired it .
  • Dividends attributable to periods totaling more than 366 days that the recipient role received on any share of preferable breed held for less than 91 days during the 181-day period that began 90 days before the ex-dividend date. See the instructions for box 1b, late. When determining the number of days the recipient held the broth, you can not count certain days during which the recipient role ‘s risk of loss was diminished. Preferred dividends attributable to periods totaling less than 367 days are subject to the 61-day hold period rule above .
  • Dividends that relate to payments that the recipient is obligated to make with respect to short sales or positions in well similar or relate property .
  • Dividends paid by a baffle investment company ( RIC ) that are not treated as qualified dividend income under section 854 .
  • Dividends paid by a very estate investment trust ( REIT ) that are not treated as qualify dividend income under section 857 ( coulomb ) .
  • deductible dividends paid on employer securities. See incision 404 ( potassium ) Dividends, later .

Qualified foreign corporation.

A foreign corporation is a qualify foreign corporation if it is :

  1. Incorporated in a possession of the United States, or
  2. eligible for benefits of a comprehensive income tax treaty with the United States that the Treasury Department determines is satisfactory for this purpose and that includes an switch over of information program .

. This is an Image: taxtip.gif For a list of income tax treaties of the United States that ( a ) are comprehensive, ( bacillus ) include an information exchange broadcast, and ( c ) have been determined by the Treasury Department to be satisfactory for this determination, see Notice 2011-64, 2011-37 I.R.B. 231, available at IRS.gov/irb/2011-37_IRB # NOT-2011-64 ..

If the foreign corporation does not meet either ( 1 ) or ( 2 ) above, then it may be treated as a qualify alien pot for any dividend paid by the pot if the stock associated with the dividend paid is promptly tradable on an established securities market in the United States. See Notice 2003-71, 2003-43 I.R.B. 922, available at IRS.gov/irb/2003-43_IRB # NOT-2003-71, for more data on when stock may be considered to be promptly tradable. For extra requirements that must be met, see Notice 2006-3, 2006-3 I.R.B. 306, available at IRS.gov/irb/2006-03_IRB # NOT-2006-3 .
A alien corporation will not be considered a qualify alien pot if :

  1. The extraneous pot is a passive extraneous investment company ( as defined in section 1297 ) for the tax year in which the dividend was paid or the anterior year ; or
  2. The foreign corporation first became a surrogate extraneous pot ( as defined in section 7874 ( a ) ( 2 ) ( B ) ) after December 22, 2017, but is not treated as a domestic corporation under section 7874 ( boron ) .

. This is an Image: taxtip.gif For steering on the extent to which distributions, inclusions, and early amounts received by, or included in the income of, individual shareholders as ordinary income from foreign corporations subject to certain anti-deferral regimes may be treated as stipulate dividends, see Notice 2004-70, 2004-44 I.R.B. 724, available at IRS.gov/irb/2004-44_IRB # NOT-2004-70 ..

Section 404(k) Dividends

Report as ordinary dividends in box 1a of Form 1099-DIV payments of 404 ( k ) dividends directly from the pot to the plan participants or their beneficiaries .
section 404 ( k ) dividends are not subject to backup withholding. besides, these dividends are not eligible for the
reduced capital gains rates ( see Exceptions under Qualified Dividends, earlier ) .

RICs and REITs

Qualified dividends.
If any part of the total ordinary dividends reported in corner 1a is qualified dividends, report the qualify dividends in box 1b .

. This is an Image: taxtip.gif For guidance refer to dividends of RICs and REITs, see Notice 2004-39, 2004-22 I.R.B. 982 ( capital gain dividends of RICs and REITs ), available at IRS.gov/irb/2004-22_IRB # NOT-2004-39, modified by Notice 2015-41, 2015-24 I.R.B. 1058 ( capital gain distributions of RICs ), available at IRS.gov/irb/2015-24_IRB # NOT-2015-41 ; and Rev. Rul. 2005-31, 2005-21 I.R.B. 1084 ( limitations applicable to dividends received from RICs ), available at IRS.gov/irb/2005-21_IRB # RR-2005-31. .

Qualified REIT dividends.
certain taxpayers are entitled to a deduction under department 199A computed by citation to several types of income, including modify REIT dividends. A qualified REIT dividend is broadly a dividend from a REIT received during the tax year that is not a capital addition dividend or a restricted dividend. however, a stipulate REIT dividend does not include any REIT dividend received with regard to any share of REIT stock that is held for 45 days or less during the 91-day period beginning on the date that is 45 days before the date on which such share became ex-dividend with respect to the dividend. When counting the number of days the recipient held the stock, include the sidereal day the recipient role disposed of the lineage, but do not include the sidereal day the recipient role acquired the stock or sealed days during which the recipient role ‘s risk of passing was diminished. In addition, a qualified REIT dividend does not include any dividend on shares of REIT breed to the extent the recipient is under an obligation ( whether pursuant to a abruptly sale or otherwise ) to make relate payments with regard to positions in substantially alike or relate place .
Section 199A dividends.
A RIC that receives qualify REIT dividends in a tax class may broadly pay section 199A dividends for that year, which certain shareholders of the RIC that meet holding period requirements may treat as dependent REIT dividends for purposes of section 199A. The sum of section 199A dividends that a RIC may pay for a tax class is limited to the amount of stipulate REIT dividends includible in the RIC ‘s taxable income for the year, reduced by properly allocable deductions. See Regulations section 1.199A-3 ( d ) for early limits and rules, including holding period requirements .
Dividend payment delayed until January.
If a RIC or a REIT declares a dividend in October, November, or December collectible to shareholders of record on a intend date in such a month, the dividends are treated as paid by the RIC or REIT and received by the recipients on December 31 of such year deoxyadenosine monophosphate long as the dividends are actually paid by the RIC or REIT during January of the follow year. Report the dividends on Form 1099-DIV for the year preceding the January they are actually paid. See sections 852 ( b ) ( 7 ) and 857 ( bacillus ) ( 9 ) for RICs and REITs, respectively .
If a dividend paid in January is subject to backup withholding, withhold when the dividend is actually paid. Therefore, backing withhold in January, deposit the withholding when appropriate, and reflect it on Form 945, Annual Return of Withheld Federal Income Tax, for the year withhold. however, because the dividend is reportable on Form 1099-DIV for the anterior year, the associate backup withholding tax is besides reportable on the prior class Form 1099-DIV .
Qualified small business stock—RICs.
Under section 1202, a 50 % exclusion may be allowed on the profit from the sale or exchange of modify small business stock issued after August 10, 1993, and held for more than 5 years. A 60 % exclusion may be allowed if the breed is authorization zone commercial enterprise standard acquired after December 21, 2000, but not on gain attributable to periods after December 31, 2018. For qualified small business broth acquired after February 17, 2009, and before September 28, 2010, the excommunication is 75 %. For certified small business stock acquired after September 27, 2010, and before January 1, 2014, the exclusion is 100 %. For purposes of the 75 % and 100 % exclusions, the acquisition date shall be the first day on which the lineage was held by the taxpayer determined after the application of section 1223 .

If any part of the capital acquire distribution reported in box 2a may qualify for this exclusion ( taking into consideration the recipient role ‘s holding period ), report the derive in box 2c, and furnish the recipient a statement that reports individually for each designated section 1202 gain the :

  • name of the pot that issued the breed that was sold ,
  • Date ( s ) on which the RIC acquired the stock ,
  • Date sold ,
  • Recipient ‘s part of the sales price ,
  • Recipient ‘s separate of the RIC ‘s basis in the stock, and
  • sum of the recipient ‘s section 1202 derive and the exclusion share .

Tax credit bonds.
If a RIC or REIT holds any tax credit bonds, any adhesiveness tax credit rating allowed to the RIC or REIT under department 54A or 54AA on the bond is included in the RIC ‘s or REIT ‘s megascopic income as interest. See sections 54A ( fluorine ) and 54AA ( f ) ( 2 ) ; and Notice 2009-15, 2009-6 I.R.B. 449, available at IRS.gov/irb/2009-06_IRB # NOT-2009-15. RICs can make an election to distribute any adhesiveness tax credits allowed under sections 54A and 54AA to its shareholders or beneficiaries. See section 853A. Report bond tax credits distributed by a RIC or REIT on Form 1097-BTC .
If a RIC or REIT distributes any credits with respect to its stock, the RIC or REIT must report the distribute credits that are treated as dividends on Form 1099-DIV. See Notice 2010-28, available at IRS.gov/irb/2010-15_IRB # NOT-2010-28 .
Section 897 gain.
If a RIC trace in section 897 ( heat content ) ( 4 ) ( A ) ( two ) or a real estate investment trust disposes of a USRPI at a amplification, any distributions made to the extent attributable to such gain shall be treated as gain recognized by the recipient from the disposition of a USRPI ( that is, the look-through rule ) .
If any separate of the ordinary dividend reported in box 1a or capital addition distributions reported in box 2a is attributable to section 897 gains, report card that gain in box 2e and box 2f, respectively .
See section 897 for the definition of USRPI and the exceptions to the look-through rule.

Note.

alone RICs and REITs should complete boxes 2e and 2f. Boxes 2e and 2f do not need to be completed for recipients that are U.S. individuals .

Restricted Stock

For information about reporting dividends on restricted malcolm stock, see Rev. Proc. 80-11, 1980-1 C.B. 616, distinguished by Rev. Proc. 83-38, 1983-1 C.B. 773 ; and Rev. Rul. 83-22, 1983-1 C.B. 17 .

Widely Held Fixed Investment Trusts (WHFITs)

Trustees and middlemen must report the gross measure of dividend income attributable to a believe income holder ( TIH ) in the appropriate box on Form 1099-DIV if that sum exceeds $ 10. If the trustee or contact provides WHFIT information using the safe harbor rules in Regulations section 1.671-5 ( degree fahrenheit ) ( 1 ) or ( thousand ) ( 1 ), the regent or interlocutor must determine the amounts reported on all Forms 1099 under part 1.671-5 ( degree fahrenheit ) ( 2 ) or ( guanine ) ( 2 ), as allow .
Due date exception and other requirements for furnishing the tax information statement to TIHs.
A tax information statement that includes the information provided to the IRS on all Forms 1099 filed for the calendar year with esteem to the TIH ‘s sake in the WHFIT, adenine well as extra data identified in Regulations part 1.671-5 ( einsteinium ), must be provided to the TIHs. The written tax information furnished to the TIH for the coverage tax year is due on or before March 15th of the subsequent year. The sum of an item of trust expense that is attributable to a TIH must be included on the tax information statement provided to the TIH and is not required to be included in box 6 on the Form 1099-DIV .
For more file requirements, see the current General Instructions for Certain Information Returns .

Statements to Recipients

If you are required to file Form 1099-DIV, you must provide a affirmation to the recipient. For information about the requirement to furnish statements to recipients, see separate M in the stream General Instructions for Certain Information Returns .
Truncating recipient’s TIN on payee statements.
pursuant to Regulations section 301.6109-4, all filers of this form may truncate a recipient ’ south TIN ( social security number ( SSN ), individual taxpayer recognition number ( ITIN ), adoption taxpayer designation number ( ATIN ), or employer identification number ( EIN ) ) on payee statements. truncation is not allowed on any documents the file clerk files with the IRS. A payer ‘s TIN may not be truncated on any form. See depart J in the current General Instructions for Certain Information Returns .

2nd TIN Not.

You may enter an “ X ” in this box if you were notified by the IRS twice within 3 calendar years that the payee provided an incorrect TIN. If you mark this box, the IRS will not send you any far notices about this account .
however, if you received both IRS notices in the same year, or if you received them in different years but they both related to information returns filed for the lapp year, do not check the box at this clock. For purposes of the two-notices-in-3-years predominate, you are considered to have received one notice and you are not required to send a second “ B ” detect to the taxpayer on acknowledge of the second base detect. See separate N in the current General Instructions for Certain Information Returns for more data .

. This is an Image: taxtip.gif For data on the TIN Matching System offered by the IRS, see Items You Should Note in the current General Instructions for Certain Information Returns. .

Account Number

The bill number is required if you have multiple accounts for a recipient role for whom you are filing more than one Form 1099-DIV. The score number is besides required if you check box 11, FATCA filing necessity. See Box 11, by and by. additionally, the IRS encourages you to designate an report number for all Forms 1099-DIV that you file. See part L in the stream General Instructions for Certain Information Returns .

Box 1a. Total Ordinary Dividends

Enter dividends, including dividends from money commercialize funds, final short-run capital gains from common funds, and other distributions on livestock. Include reinvested dividends and section 404 ( thousand ) dividends paid directly from the corporation. Box 1a includes amounts entered in boxes 1b and 2e and it besides includes the come of the recipient ‘s parcel of investment expenses that you report in box 6 .

. This is an Image: caution.gif An S pot reports as dividends on Form 1099-DIV entirely distributions made during the tax year out of accrued earnings and profits. See section 1368 for more information..

Box 1b. Qualified Dividends

Enter the part of the dividends in box 1a that qualifies for the reduce capital gains rates. Include dividends for which it is airy to determine if the section 1 ( heat content ) ( 11 ) ( B ) ( three ) holding menstruation necessity has been met. See qualify Dividends and the circumspection, earlier .
You must report a dividend paid by a foreign corporation according to the guidance provided in Notice 2003-79, 2003-50 I.R.B. 1206, available at
IRS.gov/irb/2003-50_IRB # NOT-2003-79, and Notice 2004-71, 2004-45 I.R.B. 793, available at IRS.gov/irb/2004-45_IRB # NOT-2004-71, which contain the rules for reporting the dividend for tax years 2003 and 2004. These rules are extended for 2005 and subsequent tax years by Notice 2006-3, 2006-3 I.R.B. 306, available at IRS.gov/irb/2006-03_IRB # NOT-2006-3 .

. This is an Image: caution.gif qualified dividends can not be less than zero. Do not include an measure less than zero in box 1b..

Box 2a. Total Capital Gain Distr.

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

. This is an Image: taxtip.gif For more information about reporting amounts in boxes 2b, 2c, 2d, and 2f, see section 1 ( planck’s constant ) ..

Box 2b. Unrecap. Sec. 1250 Gain

Enter any sum included in corner 2a that is an unrecaptured section 1250 addition from certain depreciable substantial property .

Box 2c. Section 1202 Gain

Enter any measure included in box 2a that is a section 1202 addition from certain qualified small business stock. See Qualified small business stock—RICs, earlier .

Box 2d. Collectibles (28%) Gain

Enter any come 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. See section 897 profit, earlier .

Box 2f. Section 897 Capital Gain

Enter any sum included in box 2a that is section 897 amplification from dispositions of USRPI. See section 897 gain, earlier .

Note.

only RICs and REITs should complete boxes 2e and 2f. Boxes 2e and 2f do not need to be completed for recipients that are U.S. individuals .

Box 3. Nondividend Distributions

Enter nondividend distributions, if determinable .

. This is an Image: taxtip.gif File Form 5452 if you are a corporation and paid nondividend distributions to shareholders..

Box 4. Federal Income Tax Withheld

Enter stand-in withhold. Recipients who have not furnished their tin to you in the manner required are subject to backup withholding on sealed dividend payments reported on this form. Use shape W-9 to request the TIN of the recipient. For alien recipients, use the applicable Form W-8. See the Instructions for the Requester of Forms W-8BEN, W-8ECI, W-8EXP, and W-8IMY .
For more information on backup withholding, including the applicable rate, see depart N in the current General Instructions for Certain Information Returns .

Box 5. Section 199A Dividends

Enter the qualify REIT dividends paid by a REIT or department 199A dividends paid by a RIC to the recipient. This amount is included in the sum reported in box 1a. Include REIT dividends ( other than capital derive dividends and certified dividends ) for which it is airy for the REIT to determine whether the recipient has met the holding time period necessity described in Regulations section 1.199A-3 ( c ) ( 2 ) ( two ). See certified REIT dividends, earlier .

Box 6. Investment Expenses

Enter the recipient role ‘s professional rata share of certain amounts deductible by a nonpublicly offered RIC in computing its taxable income. This amount is includible in the recipient role ‘s gross income under section 67 ( cytosine ) and must besides be included in box 1a. Do not include any investment expenses in box 1b .

Box 7. Foreign Tax Paid

Enter alien tax paid on dividends and other distributions on neckcloth. A RIC must report merely the total it elects to pass through to the recipient. Report this come in U.S. dollars .

Box 8. Foreign Country or U.S. Possession

Enter the name of the foreign nation or U.S. possession for which the foreign tax was paid and reported in box 7 .
RICs—Special reporting instructions.
Do not complete box 8. Under Regulations section 1.853-4, country-by-country report to shareholders for the measure reported in box 7 is not required. The requirement to file a freestanding argument to the IRS has been modified to require filing a statement that elects the application of section 853 for the tax year with the return for the tax class. See Regulations section 1.853-4 for more information. Do not send the statement with the Forms 1096 and 1099 .

. This is an Image: caution.gif Boxes 9 and 10 use only to corporations in partial or arrant elimination. Do not include these amounts in corner 1a or 1b ..

Box 9. Cash Liquidation Distributions

Enter cash distributed as part of a extermination .

Box 10. Noncash Liquidation Distributions

Enter noncash distributions made as contribution of a liquidation. Show the carnival market rate as of the date of distribution .

Box 11. FATCA Filing Requirement

Check the box if you are a U.S. payer that is reporting on Form ( mho ) 1099 ( including reporting distributions in boxes 1 through 3 and 9, 10, 12, and 13 on this Form 1099-DIV ) as part of satisfying your requirement to report with deference to a U.S. report for the purposes of chapter 4 of the Internal Revenue Code, as described in Regulations section 1.1471-4 ( five hundred ) ( 2 ) ( three ) ( A ). In addition, check the box if you are a foreign fiscal institution ( FFI ) reporting payments to a U.S. account pursuant to an election described in Regulations section 1.1471-4 ( five hundred ) ( 5 ) ( i ) ( A ) .

Box 12. Exempt-Interest Dividends

Enter exempt-interest dividends from a common fund or other RIC. Include pin down secret activity attachment interest dividends in box 13 and in the total for box 12. See the instructions for box 13 future .

Box 13. Specified Private Activity Bond Interest Dividends

Enter exempt-interest dividends paid by a RIC on stipulate private action bonds to the extent that the dividends are attributable to interest on the bonds received by the RIC minus an allocable share of the expenses. by and large, “ specified private activity bind ” means any private activity bond defined in section 141 and issued after August 7, 1986. See section 57 ( a ) ( 5 ) for more details.

Boxes 14–16. State Information

These boxes, and Copies 1 and 2, are provided for your convenience alone and need not be completed for the IRS. If you withheld state income taxes on this payment, use the express information boxes to report payments for up to two states. Keep the information for each state separated by the dash telephone line in each corner. In box 14, enter the abbreviated list of the department of state. In box 15, enter the payer ‘s country designation number. The state act is the payer ‘s identification number assigned by the individual state. enter in box 16 the state income tax withhold on this payment .
If a state tax department requires that you send them a newspaper transcript of this form, use Copy 1 to provide data to the state tax department. Give replicate 2 to the recipient for use in filing the recipient ‘s state income tax retort .

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