Form 1099-DIV
Dividends and Distributions
Form your financial institution sends you if you’ve earned more than $10 in dividends or other distributions from investments like stocks, mutual funds, or ETFs.
Dividends reported on a 1099-DIV must be included on your tax return — even if reinvested.
Understand Your Form 1099-DIV
Box 1a: Total ordinary dividends.
These are your standard dividends, taxed at your ordinary income tax rate, which can range from 10% to 37% depending on your bracket.
Box 1b: Qualified dividends.
These qualify for a lower tax rate and are generally taxed as long-term capital gains at 0%, 15%, or 20%, depending on your income.
Box 2a: Total capital gain distributions.
If your investments paid out capital gains (profits from asset sales), they’re reported here. The IRS generally treats these as long-term capital gains.
Box 3: Nondividend distributions.
These are returns of capital that aren’t taxable but can affect your cost basis in the investment.
Box 4: Federal income tax withheld.
If your broker withheld federal taxes on your dividends, the amount appears here. (State tax withheld appears in Box 14.)
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