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How to Complete IRS Form 1099-DIV (Dividends and Distributions)

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What Is IRS Form 1099-DIV?

IRS Form 1099-DIV is used to report dividends, capital gains distributions, non-taxable distributions, and liquidation distributions to shareholders.

The form requires:

  • Payer’s name, address, and TIN

  • Recipient’s name, address, and Social Security Number (SSN)

  • Account number (used by payers to identify recipients, especially in large electronic filings)

👉 For software to prepare and file dividend-related forms, visit our 1099-DIV software page.


How to Fill Out IRS Form 1099-DIV (Box by Box)

The form contains multiple boxes. Here’s what each reports:

  • Box 1a: Total ordinary dividends (taxable).

  • Box 1b: Qualified dividends portion from Box 1a (eligible for reduced tax rates of 0%, 15%, or 20%).

  • Box 2a: Total capital gain distribution.

  • Box 2b: Section 1250 gain from depreciable real property.

  • Box 2c: Section 1202 gain from small business stock (eligible for 50% or 60% exclusion).

  • Box 2d: 28% rate gain from collectibles.

  • Box 3: Non-dividend distributions (non-taxable return of capital).

  • Box 4: Federal income tax withheld (backup withholding).

  • Box 5: Investment expenses shared from a regulated investment company.

  • Box 6: Foreign tax paid.

  • Box 7: Foreign country or U.S. possession related to Box 6.

  • Box 8: Cash liquidation distributions.

  • Box 9: Non-cash liquidation distributions.

  • Box 10: Exempt-interest dividends.

  • Box 11: Specified private activity bond interest dividends.


Filing Deadlines

  • Copy B (to recipients): Must be mailed by January 31.

  • Copy A (to IRS): Must be filed with Form 1096 by February 28 (paper) or March 31 (e-file).

The IRS requires electronic filing if you issue 10 or more forms in a year.


How 1099fire Can Help

Manually preparing and filing Form 1099-DIV can be overwhelming—especially for financial institutions or investment firms handling many recipients. 1099fire simplifies the process:

  • 1099-DIV software to prepare, print, and e-file.

  • Import data directly from spreadsheets.

  • Automatic error checking to reduce rejections.

  • E-file with the IRS FIRE or IRIS system.

  • Generate and distribute recipient copies electronically or by mail.

Visit 1099fire.com to see how our software can make your reporting faster, easier, and IRS-compliant.


Key Takeaways

  • IRS Form 1099-DIV reports dividends, capital gains, and liquidation distributions.

  • Filing deadlines: January 31 for recipients, February 28/March 31 for IRS.

  • E-filing is mandatory if you submit 10+ forms.

  • 1099fire software ensures accurate, efficient filing and delivery.

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