Form 1099-DIV (Rev. January 2022) — 2024 Tax Year Checklist
Purpose of Form 1099-DIV
Form 1099-DIV reports ordinary dividends, qualified dividends, capital gain distributions, and nondividend distributions paid by corporations, real estate investment trusts, and regulated investment companies to shareholders during the 2024 calendar year. Under current tax law, qualified dividends receive preferential long-term capital gains treatment when specific holding period requirements are met.
Section 199A qualified business income dividends reported in Box 5 permit eligible recipients to claim a 20 percent deduction on qualified business income when filing Form 8995. The form serves as the official record for both taxpayers and the Internal Revenue Service to ensure accurate reporting of investment income.
Filing Requirements and Recipient Identification
Payers must obtain the recipient's correct Taxpayer Identification Number and verify it against IRS records using Form W-9. The verification process ensures compliance with federal reporting requirements and helps prevent mismatches between reported payments and recipient tax records.
When a recipient refuses to provide a valid TIN or provides an incorrect number, payers must document the refusal in their records. This documentation triggers backup withholding requirements on subsequent reportable payments at the applicable federal rate.
Backup Withholding Standards
The 2024 backup withholding rate remains 24 percent under federal withholding rules. You must apply this rate to all payments made to recipients who fail to provide their TIN or who have been notified by the IRS of an incorrect TIN.
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.
Reporting Ordinary and Qualified Dividends
You must distinguish between ordinary dividends reported in Box 1a and qualified dividends reported in Box 1b. Qualified dividends must meet specific criteria established under IRC Section 1(h)(11)(B)(iii).
The recipient must hold the stock for more than 60 days during the 121-day period that begins 60 days before the ex-dividend date. For preferred stock with dividends attributable to periods totaling more than 366 days, the recipient must hold the stock for at least 91 days during the 181-day period that begins 90 days before the ex-dividend date.
Capital Gain Distributions and Related Allocations
Report capital gain distributions from regulated investment companies and real estate investment trusts in Box 2a. You must separately allocate unrecaptured Section 1250 gain from certain depreciable real property in Box 2b, Section 1202 gain from qualified small business stock in Box 2c, and collectibles gain taxed at the 28 percent rate in Box 2d.
Section 897 Reporting for Foreign Persons
For foreign persons receiving U.S. real property interest distributions, you must report Section 897 ordinary dividends in Box 2e and Section 897 capital gain in Box 2f. Real estate investment trusts must withhold tax equal to 21 percent of the gain recognized on distributions of U.S. real property interests to foreign shareholders unless an exemption applies.
Only regulated investment companies and real estate investment trusts complete Boxes 2e and 2f. You do not need to complete these boxes for recipients who are U.S. individuals.
Nondividend Distributions and Tax Withholding
Calculate nondividend distributions reported in Box 3 as amounts that reduce shareholder basis in the security. You must ensure the amount does not exceed the recipient's adjusted basis, because any excess becomes capital gain that the recipient must report separately.
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.
Federal Tax Withholding Reporting
Report all federal income tax withheld in Box 4, including both backup withholding and foreign withholding amounts. You must exclude state or local tax withheld from this box, as those amounts belong in the state information section.
Section 199A Dividends and Investment Expenses
Enter the portion of Box 1a qualifying as Section 199A dividends in Box 5 only when the payer qualifies as a pass-through entity under applicable regulatory guidance. Recipients use this figure to calculate their qualified business income deduction on Form 8995 or Form 8995-A.
For nonpublicly offered regulated investment companies, report the recipient's share of investment expenses in Box 6. This amount is includible in the recipient's gross income under Section 67(c) and must also be included in Box 1a.
Treatment of Investment Expenses
Investment expenses from nonpublicly offered regulated investment companies are not deductible as miscellaneous itemized deductions for tax years 2018 through 2025. The Tax Cuts and Jobs Act suspended the deduction for miscellaneous itemized deductions subject to the 2 percent floor during this period.
Recipients must include these expenses in gross income under Section 67(c) but cannot claim them as deductions on their individual tax returns. Payers should not include any investment expenses in Box 1b, as that box reports only qualified dividends eligible for preferential capital gains rates.
Foreign Tax Reporting and FATCA Compliance
Report foreign tax paid on dividends and other distributions in Box 7 using U.S. dollars. Regulated investment companies report only the amount elected to pass through to recipients under Section 853.
Payers other than regulated investment companies must enter the name of the foreign country or U.S. possession in Box 8. Box 8 must remain blank for regulated investment companies because country-by-country reporting to shareholders is not required under Regulations Section 1.853-4.
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.
FATCA Filing Requirements
Check the FATCA filing requirement box in Box 11 when you report on Form 1099-DIV to satisfy your chapter 4 account reporting requirement. This box indicates that you are fulfilling your FATCA reporting obligations as a payer.
Liquidation Distributions and State Information
Classify liquidation distributions as cash in Box 9 or noncash in Box 10, reporting the fair market value of noncash property on the date of distribution. Do not include liquidation amounts in Box 1a or Box 1b.
Report exempt-interest dividends from municipal bond funds in Box 12. Separately note specified private activity bond interest in Box 13 for alternative minimum tax purposes.
Tax Treatment of Exempt Interest
Exempt-interest dividends remain nontaxable for regular income tax purposes but may trigger alternative minimum tax liability. Specified private activity bond interest requires separate reporting to enable recipients to calculate their alternative minimum tax obligations accurately.
State Tax Reporting Requirements
Complete state income tax reporting in Boxes 14 through 16 according to state law requirements. Include the state identification number and state tax withheld separately for each applicable state.
Form Compliance and Filing Standards
Copy A of Form 1099-DIV must use official IRS-printed scannable versions when filed with the IRS. Downloaded versions from the IRS website are not scannable and subject you to penalties if filed with the IRS.
You may download and print Copies B, C, 1, and 2 for recipient delivery or state filing purposes. Form 1099-DIV has been converted to continuous use, meaning both the form and instructions receive updates as needed rather than annual revisions.
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.
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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.
