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How to complete IRS Form 1099-DIV

IRS Form 1099-DIV, Dividends and Distributions, is used to report dividends, capital gains, nontaxable, and liquidation distributions.

The top of IRS Form 1099-DIV shows the payer name, address and TIN followed by the recipient name, address and social security number.
The form also asks for the account number. The account number is just a unique number that the employer uses to distinguish this employee’s account. If you are electronically submitting files with 250 records or more to the IRS, then you need an unique account number.

Each box of IRS Form 1099-DIV is discussed below:

Box 1a. Shows total ordinary dividends that are taxable.

Box 1b. Shows the portion of the amount in box 1a that may be eligible for the 15% or zero capital gains rates.

Box 2a. Shows total capital gain distribution.

Box 2b. Shows the portion of the amount in box 2a that is unrecaptured section 1250 gain from certain depreciable real property.

Box 2c. Shows the portion of the amount in box 2a that is section 1202 gain from certain small business stock that may be subject to a 50% exclusion and certain empowerment zone business stock that may be subject to a 60% exclusion.

Box 2d. Shows 28% rate gain from sales or exchanges of collectibles.

Box 3. Shows non-dividend distributions or the part of the distribution that is nontaxable.

Box 4. Shows federal income tax withheld or backup withholding.

Box 5. Shows recipient’s share of expenses of a non-publicly offered regulated investment company.

Box 6. Shows foreign tax paid.

Box 7. Shows foreign country or us possession. This box should be left blank if a regulated investment company reported the foreign tax show in box 6.

Box 8. Shows cash liquidation distributions.

Box 9. Shows noncash liquidation distributions.

Box 10. Shows exempt-interest dividends.

Box 11. Shows specified private activity bond interest dividends.

Box 12, 13, 14. Shows state, state identification number and state tax withheld.

Copy B of IRS Form 1099-DIV is sent to the recipient by the end of January.

The IRS requires payers to paper file Copy A of Form 1099-DIV and Form 1096 to their office. Payers can choose to mail paper forms to the IRS directly or to electronically file their 1099-DIV forms. You can file electronically through the Filing Information Returns Electronically System (FIRE System) you will be required to have software that produces a file in the proper format. The IRS requires payers filing 250 forms or more to electronically file. This rule applies to each type of 1099 form separately.

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Erich J. Ruth

Erich J. Ruth provides technical support for National Software which is the parent company for 1099FIRE. 1099FIRE develops and markets a comprehensive range of products that enables any size of business or institution to effectively manage and comply with year-end filing requirements. 1099FIRE is an employee-owned company located in Phoenix, Arizona.

If you have any questions or comments about our software, feel free to contact us at any time.

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