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Department of the Treasury
Internal Revenue Service
Instructions for Form

1099-DIV

(Rev. January 2024)
Dividends and Distributions

Section references are to the Internal Revenue Code furnishing statements to recipients and for retaining in
unless otherwise noted. your own files.

Future Developments
Specific Instructions
For the latest information about developments related to
File Form 1099-DIV for each person:
Form 1099-DIV and its instructions, such as legislation
enacted after they were published, go to IRS.gov/ • To whom you have paid dividends (including capital
gain dividends and exempt-interest dividends) and other
Form1099DIV.
distributions valued at $10 or more in money or other
What’s New property,
• For whom you have withheld and paid any foreign tax
E-filing returns. The Taxpayer First Act of 2019 on dividends and other distributions on stock,
authorized the Department of the Treasury and the IRS to • For whom you have withheld any federal income tax on
issue regulations that reduce the 250-return e-file dividends under the backup withholding rules, or
threshold. T.D. 9972, published February 23, 2023, • To whom you have paid $600 or more in money or other
lowered the e-file threshold to 10 (calculated by property as part of a liquidation.
aggregating all information returns), effective for
information returns required to be filed on or after January Dividends
1, 2024. Go to IRS.gov/InfoReturn for e-file options. If you make a payment that may be a dividend but you are
unable to determine whether any part of the payment is a
Reminders
dividend by the time you must file Form 1099-DIV, the
In addition to these specific instructions, you should also entire payment must be reported as a dividend. See the
use the current General Instructions for Certain regulations under section 6042 for a definition of
Information Returns. Those general instructions include dividends.
information about the following topics.
• Who must file. Exceptions
• When and where to file. You are not required to report on Form 1099-DIV the
• Electronic reporting. following.
• Corrected and void returns.
• Statements to recipients. 1. Taxable dividend distributions from life insurance
• Taxpayer identification numbers (TINs). contracts and employee stock ownership plans. These are
• Backup withholding. reported on Form 1099-R.
• Penalties. 2. Substitute payments in lieu of dividends. For
• The definitions of terms applicable for the purposes of payments received by a broker on behalf of a customer in
chapter 4 of the Internal Revenue Code that are lieu of dividends as a result of a loan of a customer's
referenced in these instructions. securities, see the instructions for box 8 under Specific
• Other general topics. Instructions for Form 1099-MISC in the current
Instructions for Forms 1099-MISC and 1099-NEC.
You can get the general instructions from General
Instructions for Certain Information Returns at IRS.gov/ Substitute payments in lieu of dividends may be
1099GeneralInstructions or go to IRS.gov/Form1099DIV. TIP reported on a composite statement to the
recipient with Form 1099-DIV. See Pub. 1179.
Continuous-use form and instructions. Form
1099-DIV and these instructions have been converted 3. Payments made to certain payees. These include a
from an annual revision to continuous use. Both the form corporation, tax-exempt organization, IRA, Archer MSA,
and instructions will be updated as needed. For the most health savings account (HSA), U.S. agency, state, District
recent version, go to IRS.gov/Form1099DIV. of Columbia, U.S. possession, or registered securities or
commodities dealer.
Section 897 gain. RICs and REITs should report any
section 897 gains on the sale of U.S. real property Certain distributions commonly referred to as
interests (USRPI) in box 2e and box 2f. For further ! “dividends” are actually interest and are to be
information, see Section 897 gain, later. CAUTION reported on Form 1099-INT. These include
so-called dividends on deposit or on share accounts in
Online fillable Copies 1, B, and 2. To ease statement
cooperative banks, credit unions, domestic building and
furnishing requirements, Copies 1, B, and 2 are fillable
loan associations, domestic and federal savings and loan
online in a PDF format, available at IRS.gov/
associations, and mutual savings banks.
Form1099DIV. You can complete these copies online for

Oct 24, 2023 Cat. No. 27978B

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Qualified Dividends information on when stock may be considered to be
Except as provided below, qualified dividends are readily tradable. For additional requirements that must be
dividends paid during the tax year from domestic met, see Notice 2006-3, 2006-3 I.R.B. 306, available at
corporations and qualified foreign corporations. IRS.gov/irb/2006-03_IRB#NOT-2006-3.
A foreign corporation will not be considered a qualified
Exceptions. The following dividends are not qualified
foreign corporation if:
dividends.
• Dividends the recipient received on any share of stock 1. The foreign corporation is a passive foreign
held for less than 61 days during the 121-day period that investment company (as defined in section 1297) for the
began 60 days before the ex-dividend date. See the tax year in which the dividend was paid or the prior year;
instructions for box 1b, later. When determining the or
number of days the recipient held the stock, you cannot 2. The foreign corporation first became a surrogate
count certain days during which the recipient's risk of loss foreign corporation (as defined in section 7874(a)(2)(B))
was diminished. The ex-dividend date is the first date after December 22, 2017, but is not treated as a domestic
following the declaration of a dividend on which the corporation under section 7874(b).
purchaser of a stock is not entitled to receive the next
For guidance on the extent to which distributions,
dividend payment. When counting the number of days the
inclusions, and other amounts received by, or
recipient held the stock, include the day the recipient TIP
included in the income of, individual shareholders
disposed of the stock but not the day the recipient
as ordinary income from foreign corporations subject to
acquired it.
certain anti-deferral regimes may be treated as qualified
• Dividends attributable to periods totaling more than 366
dividends, see Notice 2004-70, 2004-44 I.R.B. 724,
days that the recipient received on any share of preferred
stock held for less than 91 days during the 181-day period available at IRS.gov/irb/2004-44_IRB#NOT-2004-70.
that began 90 days before the ex-dividend date. See the
instructions for box 1b, later. When determining the Section 404(k) Dividends
number of days the recipient held the stock, you cannot Report as ordinary dividends in box 1a of Form 1099-DIV
count certain days during which the recipient's risk of loss payments of 404(k) dividends directly from the corporation
was diminished. Preferred dividends attributable to to the plan participants or their beneficiaries.
periods totaling less than 367 days are subject to the Section 404(k) dividends are not subject to backup
61-day holding period rule above. withholding. Also, these dividends are not eligible for the
• Dividends that relate to payments that the recipient is reduced capital gains rates (see Exceptions under
obligated to make with respect to short sales or positions Qualified Dividends, earlier).
in substantially similar or related property.
• Dividends paid by a regulated investment company RICs and REITs
(RIC) that are not treated as qualified dividend income
under section 854. Qualified dividends. If any part of the total ordinary
• Dividends paid by a real estate investment trust (REIT) dividends reported in box 1a is qualified dividends, report
that are not treated as qualified dividend income under the qualified dividends in box 1b.
section 857(c). For guidance pertaining to dividends of RICs and
• Deductible dividends paid on employer securities. See TIP REITs, see Notice 2004-39, 2004-22 I.R.B. 982
Section 404(k) Dividends, later. (capital gain dividends of RICs and REITs),
Qualified foreign corporation. A foreign corporation available at IRS.gov/irb/2004-22_IRB#NOT-2004-39,
is a qualified foreign corporation if it is: modified by Notice 2015-41, 2015-24 I.R.B. 1058 (capital
1. Incorporated in a possession of the United States, gain distributions of RICs), available at IRS.gov/irb/
or 2015-24_IRB#NOT-2015-41; and Rev. Rul. 2005-31,
2005-21 I.R.B. 1084 (limitations applicable to dividends
2. Eligible for benefits of a comprehensive income tax
received from RICs), available at IRS.gov/irb/
treaty with the United States that the Treasury Department
2005-21_IRB#RR-2005-31.
determines is satisfactory for this purpose and that
includes an exchange of information program. Qualified REIT dividends. Certain taxpayers are entitled
For a list of income tax treaties of the United to a deduction under section 199A computed by reference
TIP States that (a) are comprehensive, (b) include an to several types of income, including qualified REIT
information exchange program, and (c) have been dividends. A qualified REIT dividend is generally a
determined by the Treasury Department to be satisfactory dividend from a REIT received during the tax year that is
for this purpose, see Notice 2011-64, 2011-37 I.R.B. 231, not a capital gain dividend or a qualified dividend.
available at IRS.gov/irb/2011-37_IRB#NOT-2011-64. However, a qualified REIT dividend does not include any
REIT dividend received with respect to any share of REIT
If the foreign corporation does not meet either (1) or (2) stock that is held for 45 days or less during the 91-day
above, then it may be treated as a qualified foreign period beginning on the date that is 45 days before the
corporation for any dividend paid by the corporation if the date on which such share became ex-dividend with
stock associated with the dividend paid is readily tradable respect to the dividend. When counting the number of
on an established securities market in the United States. days the recipient held the stock, include the day the
See Notice 2003-71, 2003-43 I.R.B. 922, available at recipient disposed of the stock, but do not include the day
IRS.gov/irb/2003-43_IRB#NOT-2003-71, for more the recipient acquired the stock or certain days during

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which the recipient's risk of loss was diminished. In • Date(s) on which the RIC acquired the stock,
addition, a qualified REIT dividend does not include any • Date sold,
dividend on shares of REIT stock to the extent the • Recipient's part of the sales price,
recipient is under an obligation (whether pursuant to a • Recipient's part of the RIC's basis in the stock, and
short sale or otherwise) to make related payments with • Amount of the recipient's section 1202 gain and the
respect to positions in substantially similar or related exclusion percentage.
property.
Tax credit bonds. If a RIC or REIT holds any tax credit
Section 199A dividends. A RIC that receives qualified bonds, any bond tax credit allowed to the RIC or REIT
REIT dividends in a tax year may generally pay section under section 54A or 54AA on the bond is included in the
199A dividends for that year, which certain shareholders RIC's or REIT's gross income as interest. See sections
of the RIC that meet holding period requirements may 54A(f) and 54AA(f)(2); and Notice 2009-15, 2009-6 I.R.B.
treat as qualified REIT dividends for purposes of section 449, available at IRS.gov/irb/2009-06_IRB#NOT-2009-15.
199A. The amount of section 199A dividends that a RIC RICs can make an election to distribute any bond tax
may pay for a tax year is limited to the amount of qualified credits allowed under sections 54A and 54AA to its
REIT dividends includible in the RIC's taxable income for shareholders or beneficiaries. See section 853A. Report
the year, reduced by properly allocable deductions. See bond tax credits distributed by a RIC or REIT on Form
Regulations section 1.199A-3(d) for other limits and rules, 1097-BTC.
including holding period requirements. If a RIC or REIT distributes any credits with respect to
Dividend payment delayed until January. If a RIC or a its stock, the RIC or REIT must report the distributed
REIT declares a dividend in October, November, or credits that are treated as dividends on Form 1099-DIV.
December payable to shareholders of record on a See Notice 2010-28, available at IRS.gov/irb/
specified date in such a month, the dividends are treated 2010-15_IRB#NOT-2010-28.
as paid by the RIC or REIT and received by the recipients Section 897 gain. If a RIC described in section 897(h)(4)
on December 31 of such year as long as the dividends are (A)(ii) or a REIT disposes of a USRPI at a gain, any
actually paid by the RIC or REIT during January of the distributions made to the extent attributable to such gain
following year. Report the dividends on Form 1099-DIV for shall be treated as gain recognized by the recipient from
the year preceding the January they are actually paid. See the disposition of a USRPI (that is, the look-through rule).
sections 852(b)(7) and 857(b)(9) for RICs and REITs,
If any part of the ordinary dividend reported in box 1a or
respectively.
capital gain distributions reported in box 2a is attributable
If a dividend paid in January is subject to backup to section 897 gains, report that gain in box 2e and box 2f,
withholding, withhold when the dividend is actually paid. respectively.
Therefore, backup withhold in January, deposit the
See section 897 for the definition of USRPI and the
withholding when appropriate, and reflect it on Form 945,
exceptions to the look-through rule.
Annual Return of Withheld Federal Income Tax, for the
year withheld. However, because the dividend is Note. Only RICs and REITs should complete boxes 2e
reportable on Form 1099-DIV for the prior year, the related and . Boxes 2f 2e and do not need to be completed for 2f
backup withholding is also reportable on the prior year recipients that are U.S. individuals.
Form 1099-DIV.
Qualified small business stock—RICs. Under section Restricted Stock
1202, a 50% exclusion may be allowed on the gain from For information about reporting dividends on restricted
the sale or exchange of qualified small business stock stock, see Rev. Proc. 80-11, 1980-1 C.B. 616,
issued after August 10, 1993, and held for more than 5 distinguished by Rev. Proc. 83-38, 1983-1 C.B. 773; and
years. A 60% exclusion may be allowed if the stock is Rev. Rul. 83-22, 1983-1 C.B. 17.
empowerment zone business stock acquired after
December 21, 2000, and before December 31, 2018. For Widely Held Fixed Investment Trusts (WHFITs)
qualified small business stock acquired after February 17, Trustees and middlemen must report the gross amount of
2009, and before September 28, 2010, the exclusion is dividend income attributable to a trust income holder (TIH)
75%. For qualified small business stock acquired on or in the appropriate box on Form 1099-DIV if that amount
after September 28, 2010, and before January 1, 2014, exceeds $10. If the trustee or middleman provides WHFIT
the exclusion is 100%. For purposes of the 75% and information using the safe harbor rules in Regulations
100% exclusions, the acquisition date shall be the first day section 1.671-5(f)(1) or (g)(1), the trustee or middleman
on which the stock was held by the taxpayer determined must determine the amounts reported on all Forms 1099
after the application of section 1223. under section 1.671-5(f)(2) or (g)(2), as appropriate.
If any part of the capital gain distribution reported in Due date exception and other requirements for fur-
box 2a may qualify for this exclusion (taking into nishing the tax information statement to TIHs. A tax
consideration the recipient's holding period), report the information statement that includes the information
gain in box 2c, and furnish the recipient a statement that provided to the IRS on all Forms 1099 filed for the
reports separately for each designated section 1202 gain calendar year with respect to the TIH's interest in the
the: WHFIT, as well as additional information identified in
• Name of the corporation that issued the stock that was Regulations section 1.671-5(e), must be provided to the
sold, TIHs. The written tax information furnished to the TIH for

Instructions for Form 1099-DIV (Rev. 01-2024) -3-

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the reporting tax year is due on or before March 15 of the and 2e and it also includes the amount of the recipient's
subsequent year. The amount of an item of trust expense share of investment expenses that you report in box 6.
that is attributable to a TIH must be included on the tax
An S corporation reports as dividends on Form
information statement provided to the TIH and is not
1099-DIV only distributions made during the tax
required to be included in box 6 on the Form 1099-DIV. CAUTION!
year out of accumulated earnings and profits. See
For more filing requirements, see the current General section 1368 for more information.
Instructions for Certain Information Returns.
Statements to Recipients Box 1b. Qualified Dividends
If you are required to file Form 1099-DIV, you must provide Enter the portion of the dividends in box 1a that qualifies
a statement to the recipient. For information about the for the reduced capital gains rates. Include dividends for
requirement to furnish statements to recipients, see part M which it is impractical to determine if the section 1(h)(11)
in the current General Instructions for Certain Information (B)(iii) holding period requirement has been met. See
Returns. Qualified Dividends and the Caution, earlier.
Truncating recipient’s TIN on payee statements. You must report a dividend paid by a foreign
Pursuant to Regulations section 301.6109-4, all filers of corporation according to the guidance provided in Notice
this form may truncate a recipient’s TIN (social security 2003-79, 2003-50 I.R.B. 1206, available at
number (SSN), individual taxpayer identification number IRS.gov/irb/2003-50_IRB#NOT-2003-79, and Notice
(ITIN), adoption taxpayer identification number (ATIN), or 2004-71, 2004-45 I.R.B. 793, available at IRS.gov/irb/
employer identification number (EIN)) on payee 2004-45_IRB#NOT-2004-71, which contain the rules for
statements. Truncation is not allowed on any documents reporting the dividend for tax years 2003 and 2004. These
the filer files with the IRS. A payer's TIN may not be rules are extended for 2005 and subsequent tax years by
truncated on any form. See part J in the current General Notice 2006-3, 2006-3 I.R.B. 306, available at IRS.gov/irb/
Instructions for Certain Information Returns. 2006-03_IRB#NOT-2006-3.
2nd TIN Not. Qualified dividends cannot be less than zero. Do
not include an amount less than zero in box 1b.
You may enter an “X” in this box if you were notified by the CAUTION!
IRS twice within 3 calendar years that the payee provided
an incorrect TIN. If you mark this box, the IRS will not send Box 2a. Total Capital Gain Distr.
you any further notices about this account.
Enter total capital gain distributions (long-term). Include all
However, if you received both IRS notices in the same amounts shown in boxes 2b 2c 2d, , , and .2f
year, or if you received them in different years but they For more information about reporting amounts in
both related to information returns filed for the same year, TIP boxes 2b, 2c, 2d, and 2f, see section 1(h).
do not check the box at this time. For purposes of the
two-notices-in-3-years rule, you are considered to have
received one notice and you are not required to send a Box 2b. Unrecap. Sec. 1250 Gain
second “B” notice to the taxpayer on receipt of the second
Enter any amount included in box 2a that is an
notice. See part N in the current General Instructions for
unrecaptured section 1250 gain from certain depreciable
Certain Information Returns for more information.
real property.
For information on the TIN Matching System
TIP offered by the IRS, see Items You Should Note in Box 2c. Section 1202 Gain
the current General Instructions for Certain Enter any amount included in box 2a that is a section 1202
Information Returns. gain from certain qualified small business stock. See
Qualified small business stock—RICs, earlier.
Account Number
Box 2d. Collectibles (28%) Gain
The account number is required if you have multiple
accounts for a recipient for whom you are filing more than Enter any amount included in box 2a that is a 28% rate
one Form 1099-DIV. The account number is also required gain from sales or exchanges of collectibles.
if you check box 11, FATCA filing requirement. See Box
Box 2e. Section 897 Ordinary Dividends
11, later. Additionally, the IRS encourages you to
designate an account number for all Forms 1099-DIV that Enter any amount included in box 1a that is section 897
you file. See part L in the current General Instructions for gain from dispositions of USRPI. See Section 897 gain,
Certain Information Returns. earlier.

Box 1a. Total Ordinary Dividends Box 2f. Section 897 Capital Gain
Enter dividends, including dividends from money market Enter any amount included in box 2a that is section 897
funds, net short-term capital gains from mutual funds, and gain from dispositions of USRPI. See Section 897 gain,
other distributions on stock. Include reinvested dividends earlier.
and section 404(k) dividends paid directly from the
Note. Only RICs and REITs should complete boxes 2e
corporation. Box 1a includes amounts entered in boxes 1b
and . Boxes 2f 2e and do not need to be completed for 2f
recipients that are U.S. individuals.

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Box 3. Nondividend Distributions Boxes and 9 10 apply only to corporations in
Enter nondividend distributions, if determinable. ! partial or complete liquidation. Do not include
CAUTION these amounts in box 1a or 1b.
File Form 5452 if you are a corporation and paid
TIP nondividend distributions to shareholders.
Box 9. Cash Liquidation Distributions
Enter cash distributed as part of a liquidation.
Box 4. Federal Income Tax Withheld
Box 10. Noncash Liquidation Distributions
Enter backup withholding. Recipients who have not
furnished their TINs to you in the manner required are Enter noncash distributions made as part of a liquidation.
subject to backup withholding on certain dividend Show the fair market value as of the date of distribution.
payments reported on this form. Use Form W-9 to request
Box 11. FATCA Filing Requirement
the TIN of the recipient. For foreign recipients, use the
applicable Form W-8. See the Instructions for the Check the box if you are a U.S. payer that is reporting on
Requester of Forms W-8BEN, W-8ECI, W-8EXP, and Form(s) 1099 (including reporting distributions in boxes 1
W-8IMY. through 3 and 9, 10, 12, and 13 on this Form 1099-DIV) as
part of satisfying your requirement to report with respect to
For more information on backup withholding, including a U.S. account for the purposes of chapter 4 of the Internal
the applicable rate, see part N in the current General Revenue Code, as described in Regulations section
Instructions for Certain Information Returns. 1.1471-4(d)(2)(iii)(A). In addition, check the box if you are
a foreign financial institution (FFI) reporting payments to a
Box 5. Section 199A Dividends U.S. account pursuant to an election described in
Enter the qualified REIT dividends paid by a REIT or Regulations section 1.1471-4(d)(5)(i)(A).
section 199A dividends paid by a RIC to the recipient.
This amount is included in the amount reported in box 1a. Box 12. Exempt-Interest Dividends
Include REIT dividends (other than capital gain dividends Enter exempt-interest dividends from a mutual fund or
and qualified dividends) for which it is impractical for the other RIC. Include specified private activity bond interest
REIT to determine whether the recipient has met the dividends in box 13 and in the total for box 12. See the
holding period requirement described in Regulations instructions for box 13 next.
section 1.199A-3(c)(2)(ii). See Qualified REIT dividends,
earlier. Box 13. Specified Private Activity Bond Interest
Dividends
Box 6. Investment Expenses
Enter exempt-interest dividends paid by a RIC on
Enter the recipient's pro rata share of certain amounts specified private activity bonds to the extent that the
deductible by a nonpublicly offered RIC in computing its dividends are attributable to interest on the bonds
taxable income. This amount is includible in the recipient's received by the RIC minus an allocable share of the
gross income under section 67(c) and must also be expenses. Generally, “specified private activity bond”
included in box 1a. Do not include any investment means any private activity bond defined in section 141
expenses in box 1b. and issued after August 7, 1986. See section 57(a)(5) for
Box 7. Foreign Tax Paid more details.

Enter foreign tax paid on dividends and other distributions Boxes 14–16. State Information
on stock. A RIC must report only the amount it elects to These boxes, and Copies 1 and 2, are provided for your
pass through to the recipient. Report this amount in U.S. convenience only and need not be completed for the IRS.
dollars. If you withheld state income taxes on this payment, use
Box 8. Foreign Country or U.S. Possession the state information boxes to report payments for up to
two states. Keep the information for each state separated
Enter the name of the foreign country or U.S. possession by the dashed line in each box. In box 14, enter the
for which the foreign tax was paid and reported in box 7. abbreviated name of the state. In box 15, enter the payer's
RICs—Special reporting instructions. Do not state identification number. The state number is the
complete box 8. Under Regulations section 1.853-4, payer's identification number assigned by the individual
country-by-country reporting to shareholders for the state. Enter in box 16 the state income tax withheld on this
amount reported in box 7 is not required. The requirement payment.
to file a separate statement to the IRS has been modified
to require filing a statement that elects the application of If a state tax department requires that you send them a
section 853 for the tax year with the return for the tax year. paper copy of this form, use Copy 1 to provide information
See Regulations section 1.853-4 for more information. Do to the state tax department. Give Copy 2 to the recipient
not send the statement with the Forms 1096 and 1099. for use in filing the recipient's state income tax return.

Instructions for Form 1099-DIV (Rev. 01-2024) -5-

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