Form 1099-Div. Dividends And Distributions: Fill & Download for Free

The Form 1099 series is used to report various types of income other than wages and salaries to the IRS, with the recipients of that income receiving information copies from the payers. There are multiple types of Form 1099, and specific forms are used when reporting specific types of income. For example, interest income is reported on Form 1099-INT, dividends are reported on Form 1099-DIV, proceeds from stock transactions are reported on Form 1099-B, distributions from retirement funds are reported on Form 1099-R, and so forth. Form 1099-MISC is another form in the series that is, as the name implies, used to report miscellaneous types of income, and while it is commonly used to report compensation paid to non-employees it is not used solely for that purpose.If you receive a Form 1099 of any type, you should realize that the IRS will be looking for the income reported on that form on your tax return, and if it is not addressed there the IRS will be in touch with you.

The Form 1099-DIV is received because some of the stocks you own pay dividends, or a mutual fund you invest in made a capital gains distribution to you during the year. We don’t file this form with Internal Revenue service but the information is required when we prepare our tax returnThe Form 1099-B Proceeds From Broker and Barter Exchange Transactions is an Internal Revenue Service (IRS) tax form that is issued by brokers or barter exchanges. The form lists the gains or losses of all broker or barter exchange transactions

The tax treatment of mutual fund income can be complicated, because mutual funds by their nature will invest in multiple types of securities and the types of income earned can cross a number of boundaries. In the typical case, where you invest a sum of cash in the fund and then just let the fund manage it, you will still typically earn interest (some of which may be tax-exempt), dividends (some of which may be tax-exempt), and capital gains (even if you don't sell shares of the mutual funds yourself).Normally, you will receive a consolidated Form 1099 from the fund, which will usually include a Form 1099-INT and a Form 1099-DIV. Most of the time, if all you do is invest money and let the mutual fund manage it, there will be no other entries or forms provided to you.The Form 1099-INT, if you get one, will show your taxable interest income in Box 1 and your tax-exempt interest income (if any) in Box 8, and may also have an entry in Box 9 (which represents the portion of tax-exempt interest income that is subject to Alternative Minimum Tax, or AMT). Taxable interest is reported on line 8a of form 1040, tax-exempt interest on line 8b; you only worry about line 9 if you are subject to AMT.Form 1099-DIV normally has several entries that you would need to report. Ordinary dividends (box 1a) are reported on line 9a of your Form 1040, qualified dividends (box 1b) are reported on line 9b. Box 2a contains capital gains distributions - these are distributions of capital gains that the fund manager makes to all of the shareholders based on the fund's performance over the year, and you receive them even when you yourself had no transactions during the year. These are reported as long-term capital gains, either on Schedule D or directly on line 13 of Form 1040 (if you had no other capital gains or losses during the year). Box 10 and Box 11 show tax-exempt dividends and the portion of tax-exempt dividends subject to AMT, respectively - you report them as you do tax-exempt interest.Normally, you wouldn't need to pay estimated taxes quarterly on an investment as small as $10,000 - your annual rate of return is usually somewhere between 10-15% and it's taxed at a maximum rate of 15%.