Form 1099-DIV Instructions
Instructions for Form 1099-DIV, Dividends and Distributions
Rev. January 2024
Related Forms
- Form 1099-DIV - Dividends and Distributions
Department of the Treasury
Internal Revenue Service
Instructions for Form
1099-DIV
(Rev. January 2024)
Dividends and Distributions
Section references are to the Internal Revenue Code
unless otherwise noted.
furnishing statements to recipients and for retaining in
your own files.
Future Developments
Specific Instructions
For the latest information about developments related to
Form 1099-DIV and its instructions, such as legislation
enacted after they were published, go to IRS.gov/
File Form 1099-DIV for each person:
To whom you have paid dividends (including capital
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gain dividends and exempt-interest dividends) and other
distributions valued at $10 or more in money or other
property,
What’s New
For whom you have withheld and paid any foreign tax
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E-filing returns. The Taxpayer First Act of 2019
authorized the Department of the Treasury and the IRS to
issue regulations that reduce the 250-return e-file
threshold. T.D. 9972, published February 23, 2023,
lowered the e-file threshold to 10 (calculated by
aggregating all information returns), effective for
information returns required to be filed on or after January
on dividends and other distributions on stock,
For whom you have withheld any federal income tax on
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dividends under the backup withholding rules, or
To whom you have paid $600 or more in money or other
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property as part of a liquidation.
Dividends
If you make a payment that may be a dividend but you are
unable to determine whether any part of the payment is a
dividend by the time you must file Form 1099-DIV, the
entire payment must be reported as a dividend. See the
regulations under section 6042 for a definition of
dividends.
Reminders
In addition to these specific instructions, you should also
use the current General Instructions for Certain
Information Returns. Those general instructions include
information about the following topics.
Who must file.
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Exceptions
When and where to file.
Electronic reporting.
You are not required to report on Form 1099-DIV the
following.
Corrected and void returns.
Statements to recipients.
Taxpayer identification numbers (TINs).
Backup withholding.
1. Taxable dividend distributions from life insurance
contracts and employee stock ownership plans. These are
reported on Form 1099-R.
2. Substitute payments in lieu of dividends. For
payments received by a broker on behalf of a customer in
lieu of dividends as a result of a loan of a customer's
securities, see the instructions for box 8 under Specific
Instructions for Form 1099-MISC in the current
Penalties.
The definitions of terms applicable for the purposes of
chapter 4 of the Internal Revenue Code that are
referenced in these instructions.
Other general topics.
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Instructions for Forms 1099-MISC and 1099-NEC.
Substitute payments in lieu of dividends may be
reported on a composite statement to the
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Continuous-use form and instructions. Form
1099-DIV and these instructions have been converted
from an annual revision to continuous use. Both the form
and instructions will be updated as needed. For the most
Section 897 gain. RICs and REITs should report any
section 897 gains on the sale of U.S. real property
3. Payments made to certain payees. These include a
corporation, tax-exempt organization, IRA, Archer MSA,
health savings account (HSA), U.S. agency, state, District
of Columbia, U.S. possession, or registered securities or
commodities dealer.
Certain distributions commonly referred to as
“dividends” are actually interest and are to be
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CAUTION
reported on Form 1099-INT. These include
so-called dividends on deposit or on share accounts in
cooperative banks, credit unions, domestic building and
loan associations, domestic and federal savings and loan
associations, and mutual savings banks.
Online fillable Copies 1, B, and 2. To ease statement
furnishing requirements, Copies 1, B, and 2 are fillable
online in a PDF format, available at IRS.gov/
Oct 24, 2023
Cat. No. 27978B
information on when stock may be considered to be
readily tradable. For additional requirements that must be
met, see Notice 2006-3, 2006-3 I.R.B. 306, available at
Qualified Dividends
Except as provided below, qualified dividends are
dividends paid during the tax year from domestic
corporations and qualified foreign corporations.
A foreign corporation will not be considered a qualified
Exceptions. The following dividends are not qualified
foreign corporation if:
dividends.
1. The foreign corporation is a passive foreign
investment company (as defined in section 1297) for the
tax year in which the dividend was paid or the prior year;
or
2. The foreign corporation first became a surrogate
foreign corporation (as defined in section 7874(a)(2)(B))
after December 22, 2017, but is not treated as a domestic
corporation under section 7874(b).
Dividends the recipient received on any share of stock
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held for less than 61 days during the 121-day period that
began 60 days before the ex-dividend date. See the
number of days the recipient held the stock, you cannot
count certain days during which the recipient's risk of loss
was diminished. The ex-dividend date is the first date
following the declaration of a dividend on which the
purchaser of a stock is not entitled to receive the next
dividend payment. When counting the number of days the
recipient held the stock, include the day the recipient
disposed of the stock but not the day the recipient
acquired it.
For guidance on the extent to which distributions,
inclusions, and other amounts received by, or
included in the income of, individual shareholders
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as ordinary income from foreign corporations subject to
certain anti-deferral regimes may be treated as qualified
dividends, see Notice 2004-70, 2004-44 I.R.B. 724,
Dividends attributable to periods totaling more than 366
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days that the recipient received on any share of preferred
stock held for less than 91 days during the 181-day period
that began 90 days before the ex-dividend date. See the
number of days the recipient held the stock, you cannot
count certain days during which the recipient's risk of loss
was diminished. Preferred dividends attributable to
periods totaling less than 367 days are subject to the
61-day holding period rule above.
Section 404(k) Dividends
payments of 404(k) dividends directly from the corporation
to the plan participants or their beneficiaries.
Section 404(k) dividends are not subject to backup
withholding. Also, these dividends are not eligible for the
Qualified Dividends, earlier).
Dividends that relate to payments that the recipient is
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obligated to make with respect to short sales or positions
in substantially similar or related property.
Dividends paid by a regulated investment company
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RICs and REITs
Qualified dividends. If any part of the total ordinary
(RIC) that are not treated as qualified dividend income
under section 854.
Dividends paid by a real estate investment trust (REIT)
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that are not treated as qualified dividend income under
section 857(c).
For guidance pertaining to dividends of RICs and
Deductible dividends paid on employer securities. See
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REITs, see Notice 2004-39, 2004-22 I.R.B. 982
(capital gain dividends of RICs and REITs),
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Section 404(k) Dividends, later.
Qualified foreign corporation. A foreign corporation
modified by Notice 2015-41, 2015-24 I.R.B. 1058 (capital
gain distributions of RICs), available at IRS.gov/irb/
2005-21 I.R.B. 1084 (limitations applicable to dividends
received from RICs), available at IRS.gov/irb/
is a qualified 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 exchange of information program.
Qualified REIT dividends. Certain taxpayers are entitled
to a deduction under section 199A computed by reference
to several types of income, including qualified REIT
dividends. A qualified REIT dividend is generally a
dividend from a REIT received during the tax year that is
not a capital gain dividend or a qualified dividend.
However, a qualified REIT dividend does not include any
REIT dividend received with respect 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 day the
recipient disposed of the stock, but do not include the day
the recipient acquired the stock or certain days during
For a list of income tax treaties of the United
States that (a) are comprehensive, (b) include an
information exchange program, and (c) have been
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determined by the Treasury Department to be satisfactory
for this purpose, see Notice 2011-64, 2011-37 I.R.B. 231,
If the foreign corporation does not meet either (1) or (2)
above, then it may be treated as a qualified foreign
corporation for any dividend paid by the corporation if the
stock associated with the dividend paid is readily tradable
on an established securities market in the United States.
See Notice 2003-71, 2003-43 I.R.B. 922, available at
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Instructions for Form 1099-DIV (Rev. 01-2024)
which the recipient's risk of loss was diminished. In
addition, a qualified REIT dividend does not include any
dividend on shares of REIT stock to the extent the
recipient is under an obligation (whether pursuant to a
short sale or otherwise) to make related payments with
respect to positions in substantially similar or related
property.
Section 199A dividends. A RIC that receives qualified
REIT dividends in a tax year may generally pay section
199A dividends for that year, which certain shareholders
of the RIC that meet holding period requirements may
treat as qualified REIT dividends for purposes of section
199A. The amount of section 199A dividends that a RIC
may pay for a tax year is limited to the amount of qualified
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 other 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 payable to shareholders of record on a
specified 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 as long as the dividends are
actually paid by the RIC or REIT during January of the
following 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(b)(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, backup withhold in January, deposit the
withholding when appropriate, and reflect it on Form 945,
Annual Return of Withheld Federal Income Tax, for the
year withheld. However, because the dividend is
reportable on Form 1099-DIV for the prior year, the related
backup withholding is also reportable on the prior year
Form 1099-DIV.
Date(s) on which the RIC acquired the stock,
Date sold,
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Recipient's part of the sales price,
Recipient's part of the RIC's basis in the stock, and
Amount of the recipient's section 1202 gain and the
exclusion percentage.
Tax credit bonds. If a RIC or REIT holds any tax credit
bonds, any bond tax credit allowed to the RIC or REIT
under section 54A or 54AA on the bond is included in the
RIC's or REIT's gross income as interest. See sections
54A(f) and 54AA(f)(2); and Notice 2009-15, 2009-6 I.R.B.
RICs can make an election to distribute any bond 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 distributed
credits that are treated as dividends on Form 1099-DIV.
See Notice 2010-28, available at IRS.gov/irb/
Section 897 gain. If a RIC described in section 897(h)(4)
(A)(ii) or a REIT disposes of a USRPI at a gain, 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).
respectively.
See section 897 for the definition of USRPI and the
exceptions to the look-through rule.
recipients that are U.S. individuals.
Restricted Stock
Qualified small business stock—RICs. Under section
1202, a 50% exclusion may be allowed on the gain from
the sale or exchange of qualified small business stock
issued after August 10, 1993, and held for more than 5
years. A 60% exclusion may be allowed if the stock is
empowerment zone business stock acquired after
December 21, 2000, and before December 31, 2018. For
qualified small business stock acquired after February 17,
2009, and before September 28, 2010, the exclusion is
75%. For qualified small business stock acquired on or
after September 28, 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 stock was held by the taxpayer determined
after the application of section 1223.
For information about reporting dividends on restricted
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 amount of
dividend income attributable to a trust income holder (TIH)
in the appropriate box on Form 1099-DIV if that amount
exceeds $10. If the trustee or middleman provides WHFIT
information using the safe harbor rules in Regulations
section 1.671-5(f)(1) or (g)(1), the trustee or middleman
must determine the amounts reported on all Forms 1099
under section 1.671-5(f)(2) or (g)(2), as appropriate.
If any part of the capital gain distribution reported in
box 2a may qualify for this exclusion (taking into
consideration the recipient's holding period), report the
reports separately for each designated section 1202 gain
the:
Due date exception and other requirements for fur-
nishing 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 respect to the TIH's interest in the
WHFIT, as well as additional information identified in
Regulations section 1.671-5(e), must be provided to the
TIHs. The written tax information furnished to the TIH for
Name of the corporation that issued the stock that was
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sold,
Instructions for Form 1099-DIV (Rev. 01-2024)
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the reporting tax year is due on or before March 15 of the
subsequent year. The amount 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
An S corporation reports as dividends on Form
1099-DIV only distributions made during the tax
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CAUTION
year out of accumulated earnings and profits. See
For more filing requirements, see the current General
section 1368 for more information.
Instructions for Certain Information Returns.
Box 1b. Qualified Dividends
Statements to Recipients
for the reduced capital gains rates. Include dividends for
which it is impractical to determine if the section 1(h)(11)
(B)(iii) holding period requirement has been met. See
If you are required to file Form 1099-DIV, you must provide
a statement to the recipient. For information about the
requirement to furnish statements to recipients, see part M
in the current General Instructions for Certain Information
Returns.
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
Truncating recipient’s TIN on payee statements.
Pursuant to Regulations section 301.6109-4, all filers of
this form may truncate a recipient’s TIN (social security
number (SSN), individual taxpayer identification number
(ITIN), adoption taxpayer identification number (ATIN), or
employer identification number (EIN)) on payee
2004-71, 2004-45 I.R.B. 793, available at IRS.gov/irb/
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/
statements. Truncation is not allowed on any documents
the filer files with the IRS. A payer's TIN may not be
truncated on any form. See part J in the current General
Instructions for Certain Information Returns.
Qualified dividends cannot be less than zero. Do
2nd TIN Not.
not include an amount less than zero in box 1b.
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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 further notices about this account.
CAUTION
Box 2a. Total Capital Gain Distr.
Enter total capital gain distributions (long-term). Include all
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 same year,
do not check the box at this time. For purposes of the
two-notices-in-3-years rule, you are considered to have
received one notice and you are not required to send a
second “B” notice to the taxpayer on receipt of the second
notice. See part N in the current General Instructions for
Certain Information Returns for more information.
For more information about reporting amounts in
boxes 2b, 2c, 2d, and 2f, see section 1(h).
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Box 2b. Unrecap. Sec. 1250 Gain
unrecaptured section 1250 gain from certain depreciable
real property.
For information on the TIN Matching System
Box 2c. Section 1202 Gain
gain from certain qualified small business stock. See
Qualified small business stock—RICs, earlier.
offered by the IRS, see Items You Should Note in
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the current General Instructions for Certain
Information Returns.
Account Number
Box 2d. Collectibles (28%) Gain
gain from sales or exchanges of collectibles.
The account number is required if you have multiple
accounts for a recipient for whom you are filing more than
one Form 1099-DIV. The account number is also required
if you check box 11, FATCA filing requirement. See Box
designate an account number for all Forms 1099-DIV that
you file. See part L in the current General Instructions for
Certain Information Returns.
Box 2e. Section 897 Ordinary Dividends
earlier.
Box 2f. Section 897 Capital Gain
Box 1a. Total Ordinary Dividends
earlier.
Enter dividends, including dividends from money market
funds, net short-term capital gains from mutual funds, and
other distributions on stock. Include reinvested dividends
and section 404(k) dividends paid directly from the
recipients that are U.S. individuals.
corporation. Box 1a includes amounts entered in boxes 1b
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Instructions for Form 1099-DIV (Rev. 01-2024)
partial or complete liquidation. Do not include
Box 3. Nondividend Distributions
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Enter nondividend distributions, if determinable.
CAUTION
File Form 5452 if you are a corporation and paid
nondividend distributions to shareholders.
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Box 9. Cash Liquidation Distributions
Enter cash distributed as part of a liquidation.
Box 4. Federal Income Tax Withheld
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.
Enter backup withholding. Recipients who have not
furnished their TINs to you in the manner required are
subject to backup withholding on certain dividend
payments reported on this form. Use Form W-9 to request
the TIN of the recipient. For foreign recipients, use the
applicable Form W-8. See the Instructions for the
Requester of Forms W-8BEN, W-8ECI, W-8EXP, and
W-8IMY.
Box 11. FATCA Filing Requirement
Check the box if you are a U.S. payer that is reporting on
Form(s) 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 respect to
a U.S. account for the purposes of chapter 4 of the Internal
Revenue Code, as described in Regulations section
1.1471-4(d)(2)(iii)(A). In addition, check the box if you are
a foreign financial institution (FFI) reporting payments to a
U.S. account pursuant to an election described in
For more information on backup withholding, including
the applicable rate, see part N in the current General
Instructions for Certain Information Returns.
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.
Include REIT dividends (other than capital gain dividends
and qualified dividends) for which it is impractical for the
REIT to determine whether the recipient has met the
holding period requirement described in Regulations
earlier.
Regulations section 1.1471-4(d)(5)(i)(A).
Box 12. Exempt-Interest Dividends
Enter exempt-interest dividends from a mutual fund or
other RIC. Include specified private activity bond interest
dividends in box 13 and in the total for box 12. See the
instructions for box 13 next.
Box 13. Specified Private Activity Bond Interest
Dividends
Box 6. Investment Expenses
Enter exempt-interest dividends paid by a RIC on
specified private activity 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. Generally, “specified private activity bond”
means any private activity bond defined in section 141
and issued after August 7, 1986. See section 57(a)(5) for
more details.
Enter the recipient's pro rata share of certain amounts
deductible by a nonpublicly offered RIC in computing its
taxable income. This amount is includible in the recipient's
gross income under section 67(c) and must also be
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. Report this amount in U.S.
dollars.
Boxes 14–16. State Information
These boxes, and Copies 1 and 2, are provided for your
convenience only and need not be completed for the IRS.
If you withheld state income taxes on this payment, use
the state information boxes to report payments for up to
two states. Keep the information for each state separated
by the dashed line in each box. In box 14, enter the
abbreviated name of the state. In box 15, enter the payer's
state identification number. The state number is the
payer's identification number assigned by the individual
state. Enter in box 16 the state income tax withheld on this
payment.
Box 8. Foreign Country or U.S. Possession
Enter the name of the foreign country or U.S. possession
RICs—Special reporting instructions. Do not
complete box 8. Under Regulations section 1.853-4,
country-by-country reporting to shareholders for the
to file a separate statement 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 year.
See Regulations section 1.853-4 for more information. Do
not send the statement with the Forms 1096 and 1099.
If a state tax department requires that you send them a
paper copy of this form, use Copy 1 to provide information
to the state tax department. Give Copy 2 to the recipient
for use in filing the recipient's state income tax return.
Instructions for Form 1099-DIV (Rev. 01-2024)
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