A common 1099-DIV error qualified dividends issue occurs when Field 2 (Qualified Dividends) has an amount but Field 1 (Total Ordinary Dividends) is zero. Since qualified dividends are part of total ordinary dividends, the IRS will reject the filing if these fields don’t match properly.
Why This 1099-DIV Error Matters
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Field 1 (Total Ordinary Dividends): Must include all dividends — both qualified and non-qualified.
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Field 2 (Qualified Dividends): Reports only the portion classified as qualified.
If Field 2 shows an amount but Field 1 does not, the IRS sees an inconsistency. This mismatch can cause delays, rejections, or penalties.
👉 Related: IRS FIRE System File Status
How to Fix a 1099-DIV Error with Qualified Dividends
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Check Field 2 – Verify the qualified dividends reported are accurate.
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Calculate Field 1 properly – Add qualified dividends (Field 2) + non-qualified dividends.
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Confirm accuracy – Make sure Field 1 is equal to or greater than Field 2.
👉 Related: Common IRS FIRE System Errors
Example
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If Field 2 = $100 (qualified dividends), then Field 1 must be at least $100.
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If you also have $50 in non-qualified dividends, then Field 1 should be $150.
This prevents the 1099-DIV error qualified dividends mismatch and ensures acceptance by the IRS.
Why Fixing This Error Is Important
Correcting the 1099-DIV error qualified dividends problem ensures your form meets IRS reporting requirements and avoids unnecessary rejections that can delay processing.
👉 Need help filing? Try our 1099-DIV Software.
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