Form 1099-DIV 2019 Checklist
Purpose and Reporting Scope
Form 1099-DIV reports dividend and capital gain distributions paid to recipients during the 2019 calendar year. The 2019 form introduced Box 5 for Section 199A dividends as a permanent reporting requirement, reflecting the Tax Cuts and Jobs Act qualified business income treatment for passthrough dividends eligible for the 20% deduction under Internal Revenue Code Section 199A. This reporting obligation remains in effect through 2025 and allows recipients to identify dividends qualifying for the qualified business income deduction on their 2019 Form 1040.
Payer Identification and Information Standards
Verify the payer's complete legal name, street address, city, state, ZIP code, country when applicable, and telephone number match Internal Revenue Service records. Confirm the payer's taxpayer identification number appears in 9-digit format and include it in the designated box on all copies. Accurate payer information ensures proper processing and prevents delays in recipient tax return filing.
Recipient Identification Requirements
Enter the recipient's complete legal name and full street address, including apartment or suite number, exactly as provided by the recipient. Use the recipient's taxpayer identification number in full 9-digit format, which may be a Social Security Number, Individual Taxpayer Identification Number, Adoption Taxpayer Identification Number, or Employer Identification Number. Complete identification information protects against backup withholding and ensures accurate tax reporting for the 2019 year.
Box 1: Ordinary and Qualified Dividends
Report Box 1a as the sum of all taxable dividend payments made during 2019, representing total ordinary dividends paid to the recipient. Separately identify Box 1b as the portion eligible for preferential capital gains rates under the Tax Cuts and Jobs Act qualified dividend treatment. The Box 1b amount cannot exceed the Box 1a total, and recipients use these figures on Form 1040 lines 3a and 3b for their 2019 tax returns.
Box 5: Section 199A Dividends
Complete Box 5 for 2019 by separately reporting dividends that qualify under Internal Revenue Code Section 199A. This amount allows recipients to claim the 20% qualified business income deduction on Form 1040 for tax year 2019.
The Box 5 amount must be included in the Box 1a total but requires separate identification to enable proper deduction calculation. Section 199A dividend reporting distinguishes passthrough dividend income eligible for the qualified business income deduction from ordinary dividends under the Tax Cuts and Jobs Act requirements remaining in effect through 2025.
Box 2: Capital Gain Distributions and Allocations
Report Box 2a as total capital gain distributions from regulated investment companies and real estate investment trusts during 2019. Separately itemize Box 2b for unrecaptured Section 1250 gain, Box 2c for Section 1202 small business stock gain, and Box 2d for collectibles gain taxed at the 28% rate as applicable for 2019 capital gains treatment. Recipients use these allocations to complete Schedule D and calculate their 2019 capital gains tax liability accurately.
Box 3: Nondividend Distributions
Enter Box 3 for return-of-capital amounts that reduce the recipient's cost basis in the investment. Advise recipients in writing that they must reduce their cost basis by this amount and that future distributions become capital gains once the basis is exhausted. Nondividend distributions do not constitute taxable income in the year received but affect future gain or loss calculations when the investment is sold.
Box 4: Federal Income Tax Withheld
Report Box 4 only if backup withholding was applied in 2019 due to a missing or incorrect taxpayer identification number. Do not include estimated tax payments or voluntary withholding elections in this box.
Backup withholding rules for 2019 apply a flat rate of 24% when the recipient failed to provide a valid taxpayer identification number, as required under Internal Revenue Code Section 3406. Recipients claim Box 4 amounts as federal tax withheld on their 2019 income tax returns.
Box 7 and Box 8: Foreign Tax Reporting
Report Box 7 if the payer, typically a regulated investment company, paid foreign income tax on behalf of recipients in 2019. Leave Box 8 blank if a regulated investment company reported the foreign tax to avoid duplication. Recipients may claim Box 7 amounts as a foreign tax credit or deduction on their 2019 Form 1040, following applicable foreign tax credit rules.
Box 9 and Box 10: Liquidation Distributions
Complete Box 9 and Box 10 if the recipient received proceeds from a fund liquidation or reorganization during 2019. Distinguish between cash payments reported in Box 9 and noncash property distributions reported in Box 10. Recipients use these amounts to calculate gain or loss from the liquidation event, applying the proceeds to their remaining cost basis after accounting for any nondividend distributions in Box 3.
Box 11 and Box 12: Exempt-Interest Dividends
Report Box 11 for exempt-interest dividends from municipal bond fund distributions paid during 2019. Box 12 reports specified private activity bond interest included in Box 11, which remains subject to alternative minimum tax under Internal Revenue Code Section 57. Recipients report Box 11 amounts as tax-exempt interest on Form 1040 line 2a and use Box 12 amounts when calculating alternative minimum tax on Form 6251 for 2019.
State Tax Reporting
Complete boxes 13, 14, and 15 with the two-letter state abbreviation, state identification number, and state income tax withheld in 2019. Furnish Copy 2 with the recipient's state tax return if required by state law. State reporting requirements vary by jurisdiction, and payers must comply with applicable state regulations for the 2019 tax year.
Filing Requirements and Deadlines
Furnish Copy B to recipients by January 31, 2020, or the next business day when that date falls on a weekend or holiday. File Copy A with the Internal Revenue Service by February 28, 2020, for paper submissions or March 31, 2020, for electronic filing. Attach Form 1096 summary transmittal showing aggregate totals across all Form 1099-DIV forms filed for 2019 when submitting paper returns.
FATCA Account Reporting
The FATCA account reporting requirement checkbox remains active for 2019 reporting. When checked, the payer satisfies Chapter 4 account reporting obligations, and the recipient may have a corresponding filing requirement on Form 8938. Recipients should review their foreign account reporting obligations based on the FATCA checkbox status on their 2019 Form 1099-DIV.
Nominee Reporting Obligations
If you received a 1099-DIV for 2019 containing amounts owned by others, you must file separate Forms 1099-DIV with Form 1096 for each other owner and furnish copies to them. Spouses are excluded from this nominee reporting rule. Nominee filers act as intermediaries and must issue corrected forms reflecting the beneficial owner's information and amounts for proper tax reporting in 2019.
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This checklist is for educational purposes only and does not constitute tax or legal advice. Always review official IRS instructions and consult a qualified professional for guidance.
