A 1099-DIV form is the IRS information return that banks, brokers, and mutual fund companies use to report the dividends and distributions they paid you during the year. The payer sends one copy to you and one to the IRS, generally once a single account pays you $10 or more. You receive the form, but you do not file it yourself.
Form 1099-DIV reports dividends and distributions of $10 or more from one payer, to you and to the IRS. You do not file it; you copy its box figures onto Form 1040. For 2026, ordinary dividends are taxed at your regular 10% to 37% rates, while qualified dividends and capital gain distributions are taxed at 0%, 15%, or 20% (Source: IRS Rev. Proc. 2025-32).
What is a 1099-DIV and who sends it?
A 1099-DIV form is an IRS information return that a payer, usually a bank, brokerage, or mutual fund company, uses to report dividends and other distributions it paid you. The payer must file the form and furnish your copy once the total reaches $10 or more, or $600 or more in a liquidation (Source: IRS 2025 Instructions for Form 1099-DIV).
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The payer must send your copy by January 31 following the tax year (Source: IRS 2025 Instructions for Form 1099-DIV). If you hold taxable investments across several firms, expect a separate 1099-DIV, or a consolidated 1099 that contains one, from each payer that met the threshold. The $10 figure is not indexed for inflation.
Why did you get a 1099-DIV?
You received a 1099-DIV because a taxable account paid you dividends or capital gain distributions of at least $10 during the year. Common sources include individual stocks, mutual funds, exchange-traded funds (ETFs), and real estate investment trusts (REITs) held in a regular brokerage or fund account (Source: IRS 2025 Instructions for Form 1099-DIV).
Distributions inside a tax-deferred or tax-free retirement account do not generate a 1099-DIV. Dividends earned within a 401(k), traditional IRA, or Roth IRA are not reported here because they are not currently taxable; those accounts report money only when it leaves, on Form 1099-R (Source: IRS 2025 Instructions for Form 1099-DIV; IRS Topic No. 404). Because those dividends stay off your current return, the taxable-versus-tax-advantaged mix changes how much investment income shows up each year, an input a Roth conversion analysis often models alongside required minimum distributions.
1099-DIV box-by-box breakdown
Each box on Form 1099-DIV either reports a type of income or supplies information used when the figures go on your return. The table below explains every box in plain English, including the ones filers find confusing, such as Box 2b unrecaptured Section 1250 gain, Box 3 nondividend distributions, and Box 5 Section 199A dividends (Source: IRS 2025 Instructions for Form 1099-DIV).
| Box | Label | What it means |
|---|---|---|
| 1a | Total ordinary dividends | All taxable dividends for the year, including money-market-fund dividends and short-term capital gains passed through by funds. This is the headline number. |
| 1b | Qualified dividends | The portion of Box 1a taxed at the lower capital gains rates. A subset of Box 1a, not an added amount. |
| 2a | Total capital gain distributions | Long-term capital gains passed through by mutual funds and REITs. Already includes any amounts in Boxes 2b, 2c, 2d, and 2f. |
| 2b | Unrecaptured Section 1250 gain | The part of a capital gain distribution tied to depreciation on real property, taxed at a rate up to 25%. |
| 2c | Section 1202 gain | Gain from qualified small business stock that may qualify for special treatment under Section 1202. |
| 2d | Collectibles (28%) gain | Gain from collectibles, which can be taxed at a maximum rate of 28%. |
| 2e / 2f | Section 897 gains | Ordinary and capital gain from U.S. real property interests. Only RICs and REITs complete these; most recipients can ignore them. |
| 3 | Nondividend distributions | Return of your own invested capital, not taxable now. It reduces your cost basis, raising your taxable gain when you sell. |
| 4 | Federal income tax withheld | Backup withholding already sent to the IRS on your behalf. Claim it as tax already paid. |
| 5 | Section 199A dividends | Qualified REIT dividends that may be eligible for the 20% qualified business income (QBI) deduction. Also included in Box 1a. |
| 7 / 8 | Foreign tax paid / foreign country | Foreign tax withheld on your dividends and the country it went to. Can support a foreign tax credit or deduction. |
| 9 / 10 | Cash / noncash liquidation distributions | Amounts received when a company or fund liquidated. Reporting is required at $600 or more. |
| 11 / 12 | Exempt-interest and private activity bond dividends | Tax-exempt interest dividends from a fund, and the portion subject to the alternative minimum tax (AMT). |
| 14 to 16 | State information | State name, state identification number, and state income tax withheld. |
The 25% rate on unrecaptured Section 1250 gain and the 28% collectibles rate are figured on the Schedule D worksheets, not on the 1099-DIV itself. The Section 199A deduction on Box 5 qualified REIT dividends (up to 20% of the amount) was made permanent for 2026 and later by the One Big Beautiful Bill Act, P.L. 119-21 (Source: IRS Instructions for Schedule D (Form 1040); IRS, Qualified Business Income Deduction).
Ordinary vs. qualified dividends
Ordinary dividends (Box 1a) are taxed as ordinary income, while qualified dividends (Box 1b) are taxed at the lower net capital gain rates. Every qualified dividend is also counted inside the Box 1a total, so the two boxes are never added together. The split between them is what sets your tax rate (Source: IRS Pub. 550).
To be qualified, common stock generally must be held more than 60 days during the 121-day period that begins 60 days before the ex-dividend date; certain preferred stock uses a 90-day test in a 181-day window. Some payments never qualify, including payments in lieu of dividends on short sales (Source: IRS Pub. 550).
| Feature | Ordinary dividends (Box 1a) | Qualified dividends (Box 1b) |
|---|---|---|
| Tax rate | Ordinary income rates: 10%, 12%, 22%, 24%, 32%, 35%, 37% | Net capital gain rates: 0%, 15%, or 20% |
| Holding period | No special holding period | More than 60 days in the 121-day window around the ex-dividend date (common stock) |
| Relationship | Includes all dividends, including the qualified portion | A subset of Box 1a, not an extra amount |
The ordinary rate schedule of 10% to 37% was made permanent by the One Big Beautiful Bill Act (P.L. 119-21, July 2025) and carries the 2026 inflation adjustments (Source: IRS Rev. Proc. 2025-32 Section 2.01).
How 1099-DIV income is taxed in 2026
Qualified dividends (Box 1b) and capital gain distributions (Box 2a) are taxed at 0%, 15%, or 20% for 2026, with the rate set by your taxable income and filing status. The Qualified Dividends and Capital Gain Tax Worksheet stacks ordinary income first, so these amounts fill the brackets above your other income (Source: IRS Rev. Proc. 2025-32 Section 4.03).
| Filing status | 0% rate up to | 15% rate up to | 20% rate above |
|---|---|---|---|
| Married filing jointly / surviving spouse | $98,900 | $613,700 | $613,700 |
| Single | $49,450 | $545,500 | $545,500 |
| Head of household | $66,200 | $579,600 | $579,600 |
| Married filing separately | $49,450 | $306,850 | $306,850 |
These 2026 thresholds rose from 2025, when the single-filer 0% ceiling was $48,350 and the joint ceiling was $96,700 (Source: IRS Rev. Proc. 2024-40 Section 4.03). Ordinary dividends in Box 1a are instead taxed at the seven ordinary rates from 10% to 37% (Source: IRS Topic No. 404).
Dividends and capital gain distributions also count as net investment income for the 3.8% Net Investment Income Tax, which applies to the lesser of net investment income or the amount your modified adjusted gross income exceeds a fixed threshold: $250,000 for joint filers, $200,000 for single and head of household, and $125,000 for married filing separately. Those thresholds are set by statute and are not indexed for inflation (Source: 26 U.S.C. Section 1411; IRS Topic No. 559). Our Net Investment Income Tax 2026 guide walks through the mechanics, and how much to convert to a Roth in a given year can shape whether that surtax applies.
Do you file the 1099-DIV, and what about Schedule B?
You do not file the 1099-DIV itself with the IRS. The payer already sent the IRS its copy; your job is to report the same numbers on your return. Ordinary dividends flow to Form 1040 lines 3a and 3b and to Schedule B when required, while capital gain distributions flow to Schedule D or directly to Form 1040 (Source: IRS Topic No. 404).
Schedule B is required when your total taxable interest plus ordinary dividends is more than $1,500 for the year; below that amount you can generally report the totals directly on Form 1040 (Source: IRS Topic No. 404). The general sequence is:
- Gather every 1099-DIV and consolidated 1099 from each payer.
- Enter total ordinary dividends (Box 1a) on Form 1040 line 3b and qualified dividends (Box 1b) on line 3a.
- Report capital gain distributions (Box 2a) on Schedule D or the Form 1040 line the instructions specify.
- Add Schedule B when interest plus ordinary dividends exceeds $1,500.
- Claim any federal tax withheld (Box 4) as tax already paid.
1099-DIV vs. 1099-INT vs. 1099-B
These three forms report different investment income, and mixing them up is a frequent filing mistake. A 1099-DIV reports dividends and distributions, a 1099-INT reports interest income, and a 1099-B reports proceeds from selling securities (Source: IRS 2025 Instructions for Forms 1099-DIV, 1099-INT, and 1099-B).
| Form | Reports | Typical source |
|---|---|---|
| 1099-DIV | Dividends and capital gain distributions | Stocks, mutual funds, ETFs, REITs |
| 1099-INT | Interest income | Bank accounts, CDs, bonds |
| 1099-B | Proceeds and gain or loss from sales | Selling stocks, bonds, or fund shares |
A single brokerage often combines all three into one consolidated 1099 statement, so you may see each section inside the same document (Source: IRS 2025 Instructions for Form 1099-DIV).
Do you report dividends under $10?
Yes. A payer is not required to issue a 1099-DIV when your dividends from that payer total less than $10, but you are still required to report every taxable dividend on your return, whether or not a form arrived (Source: IRS 2025 Instructions for Form 1099-DIV; IRS Topic No. 404). The reporting threshold applies to the payer, not to the taxpayer.
For example, if a brokerage account paid $7 in dividends and sent no form, that $7 still belongs on the return. A year-end account statement usually shows the figure.
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Frequently asked questions
Do I have to report 1099-DIV on my taxes?
Yes. Dividends and distributions shown on a 1099-DIV are taxable income and must be reported on your Form 1040, even though you do not file the form itself. The IRS receives a matching copy from the payer, so leaving the amounts off your return can trigger a mismatch notice (Source: IRS Topic No. 404).
Do I need to report dividends less than $10?
Yes. A payer is not required to issue a 1099-DIV for dividends under $10 from that payer, but you must still report those dividends on your return. The reporting threshold applies to the payer, not to the taxpayer, so small amounts remain taxable (Source: IRS 2025 Instructions for Form 1099-DIV; IRS Topic No. 404).
What is the difference between a 1099-DIV and a 1099-B?
A 1099-DIV reports dividends and capital gain distributions paid to you, while a 1099-B reports the proceeds and gain or loss from selling securities. Dividends are income for holding an investment; 1099-B figures come from a sale. A brokerage may combine both on one consolidated 1099 (Source: IRS 2025 Instructions for Forms 1099-DIV and 1099-B).
Is 1099-DIV considered income?
Yes. Ordinary dividends in Box 1a and capital gain distributions in Box 2a are taxable income. Box 3 nondividend distributions are a return of your own capital and are not taxable now, though they lower your cost basis and can increase your taxable gain when you sell (Source: IRS 2025 Instructions for Form 1099-DIV).
Who sends out a 1099-DIV?
The payer sends it, generally a bank, brokerage, or mutual fund company that paid you dividends or distributions. The payer must furnish your copy by January 31 following the tax year and file a copy with the IRS. Retirement accounts such as a 401(k) or IRA do not generate a 1099-DIV (Source: IRS 2025 Instructions for Form 1099-DIV).
What happens if I don’t report my 1099-DIV?
Because the IRS has the payer’s matching copy, omitting a 1099-DIV can lead to an automated notice, additional tax, and potential interest and penalties. The IRS compares the income reported to it against your return, so unreported dividends often surface. The income remains reportable whether or not the form arrived (Source: IRS Topic No. 404).
How much do you have to make to get a 1099-DIV?
A payer must issue a 1099-DIV when it pays you $10 or more in dividends and distributions during the year, or $600 or more in a liquidation. Below $10 the payer may not send a form, but the dividends remain reportable on your return (Source: IRS 2025 Instructions for Form 1099-DIV).
Do you pay taxes on 1099-DIV?
Usually yes. Ordinary dividends are taxed at your ordinary income rates of 10% to 37%, while qualified dividends and capital gain distributions are taxed at 0%, 15%, or 20% for 2026 based on taxable income. Higher totals can also face the 3.8% Net Investment Income Tax (Source: IRS Rev. Proc. 2025-32; 26 U.S.C. Section 1411).
Sources
IRS, 2025 Instructions for Form 1099-DIV (irs.gov/instructions/i1099div).
IRS, Topic No. 404, Dividends (irs.gov/taxtopics/tc404).
IRS, Publication 550, Investment Income and Expenses (irs.gov/publications/p550).
IRS, Instructions for Schedule D (Form 1040), Unrecaptured Section 1250 Gain and 28% Rate Gain Worksheets (irs.gov/instructions/i1040sd).
IRS, Qualified Business Income Deduction (Section 199A), including qualified REIT dividends (irs.gov/newsroom/qualified-business-income-deduction).
IRS, Rev. Proc. 2025-32, Section 4.03 and Section 2.01, 2026 inflation-adjusted amounts (irs.gov/pub/irs-drop/rp-25-32.pdf).
IRS, Rev. Proc. 2024-40, Section 4.03, 2025 inflation-adjusted amounts (irs.gov/pub/irs-drop/rp-24-40.pdf).
IRS, Topic No. 559, Net Investment Income Tax (irs.gov/taxtopics/tc559); 26 U.S.C. Section 1411 (law.cornell.edu/uscode/text/26/1411).
