1099-DIV - Overview
Form 1099-DIV is used by banks and other financial institutions to report dividends and other distributions to taxpayers and to the IRS.
File Form 1099-DIV for each person:
- To whom you have paid dividends (including capital gain dividends and exempt-interest dividends) and other distributions valued at $10 or more in money or other property (i.e., Box 1a, 2a, 3, and 12),
- For whom you have withheld and paid any foreign tax on dividends and other distributions on stock (i.e., Box 7),
- For whom you have withheld any federal income tax on dividends under the backup withholding rules (i.e., Box 4), or
- To whom you have paid $600 or more in money or other property as part of a liquidation (i.e., Box 9 and 10).
Please note: Some accounts may be considered exempt based on their US tax classification. (e.g. Corporation).
Deadlines
See below for the deadlines relevant to the Form 1099-DIV:
- January 31st is the last day to deliver forms to recipients
- March 31st is the last day to submit filings
If a deadline falls on a weekend or holiday, it will be extended to the next business day. A 30-day extension is generally available for both of the deadlines above.
Resources
Please see the Form 1099-DIV – IRS Form & Instructions for official IRS information.
Below are the applicable CSV Ingestion Templates:
- Account Owner/Account CSV Template
- Transactions CSV Template
- 1099-DIV Form Data CSV Template – Only required if not sending transactions
A sample form is also attached to the bottom of this article for your reference.
Data Requirements
See below for all of the required data elements for completing Form 1099-DIV reporting.
Filing Entity
The legal entity responsible for the issuing forms will be the filing entity. The information listed below must be submitted through the Taxbit Dashboard.
For more information on Filer setup, please refer to this guide: Filer Setup
|
Field Name |
Required |
|
Name |
Required |
|
Address |
Required |
|
Tax Residency |
Required |
|
US TIN |
Required |
|
Contact Phone Number |
Required |
Please note: If there are multiple filers, please ensure that you are using the correct filer ID for the associated account(s).
Account Owner / Account
For ingestion purposes, the only data point required to create/update an Account Owner is the Account ID. This allows you to add all of your users to the Dashboard, even while you may still be collecting additional information. There will be reports available in the Dashboard to let you know if something is missing for an Account that is eligible for a tax form.
For more information on formatting the Account Owner/Account CSV templates, please refer to this guide: Standard Account Owner/Account - CSV Ingestion Template Guide
The following table, however, summarizes the required fields needed to complete the Form 1099-DIV.
|
Field Name |
Required |
|
Account Owner ID |
Only required if you have Account Owners with multiple Accounts |
|
Account ID |
Required |
|
Name |
Required |
|
Joint Account Name |
If Applicable |
|
Address |
Required |
|
Tax Residency |
Presumed US if unavailable |
|
TIN |
Required |
|
Filer ID |
Only required if you have multiple Filers |
Note that there are other fields on the Account Owner / Account model that are not listed here, as they are not required for 1099-DIV reporting.
Form Data
For account activity, you will need to prepare the Form Data templates for each of the form types. These templates generally mirror the fields on the corresponding IRS form and should include the final aggregated amounts for reporting.
Note that there should typically be a single row for each Account in the template; however, if the income applies to multiple states, there may be a separate row for each state. The state field is only required if there is state withholding, or if the income is attributable to a state that is different from the Account Owner’s address. Additionally, if you are using the consolidated statement, you may provide a row for each dividend.
|
Field Name |
Standard |
Consolidated |
|
Account ID |
Required |
Required |
|
Security Description |
Not Applicable |
Required |
|
CUSIP Number |
Not Applicable |
Required |
|
Payable Date |
Not Applicable |
If Applicable |
|
Dividend Distributions |
Not Applicable |
If Applicable |
|
Short-Term Capital Gains |
Not Applicable |
If Applicable |
|
Total ordinary dividends (Box 1a) |
At least one of these fields must be provided |
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Total capital gain distribution (Box 2a) |
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Nondividend distributions (Box 3) |
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Section 199A dividends (Box 5) |
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Investment expense (Box 6) |
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Foreign tax paid (Box 7) |
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Qualified dividends (Box 1b) |
If Applicable |
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Unrecap Section 1250 gain (Box 2b) |
If Applicable |
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Section 1202 gain (Box 2c) |
If Applicable |
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Collectibles (28%) gain (Box 2d) |
If Applicable |
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Section 897 ordinary dividends (Box 2e) |
If Applicable |
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Section 897 capital gain (Box 2f) |
If Applicable |
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Federal income tax withheld (Box 4) |
If Applicable |
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Foreign country or U.S. possession (Box 8) |
If Applicable |
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Cash liquidation distributions (Box 9) |
If Applicable |
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Noncash liquidation distributions (Box 10) |
If Applicable |
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Exempt-interest dividends (Box 12) |
If Applicable |
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Specified private activity bond interest dividends (Box 13) |
If Applicable |
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State (Box 14) |
Only required if there is state withholding, or the income is applicable to a state that is different from the address state |
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State identification no. (Box 15) |
If Applicable |
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State tax withheld (Box 16) |
If Applicable |
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