A 1099-DIV is an IRS form that reports dividends and distributions paid to you by a brokerage, mutual fund, or corporation during the tax year. It breaks income into ordinary dividends (Box 1a), qualified dividends (Box 1b), and capital gain distributions (Box 2a), and shows any federal or foreign tax withheld.

Why would I get a 1099-DIV?

You get a 1099-DIV when a brokerage, mutual fund, or corporation paid you $10 or more in dividends or distributions during the year, or withheld any federal tax. A mutual fund that passed through capital gain distributions also triggers one — even if you never sold a share. You won't receive one for dividends inside a 401(k) or IRA.

Do I have to report a 1099-DIV on my tax return?

Yes. You don't file the 1099-DIV itself, but you must report its income on your return — use the boxes to fill out Schedule B (if dividends exceed $1,500) and carry totals to Form 1040. You must report all dividend income even if a payer didn't send a form, including dividends that were automatically reinvested.

What's the difference between Box 1a and Box 1b on a 1099-DIV?

Box 1a is your total ordinary dividends — the full taxable amount. Box 1b, qualified dividends, is a subset of Box 1a that met IRS holding-period rules and is taxed at lower long-term capital-gains rates of 0%, 15%, or 20%. Box 1b is never larger than Box 1a; it's a portion of it, not an additional amount.

Is a 1099-DIV the same as a 1099-INT?

No. A 1099-DIV reports dividends and distributions from stocks, mutual funds, and ETFs. A 1099-INT reports interest income from bank accounts, CDs, and bonds. They're separate forms for separate income types, though a consolidated brokerage statement may bundle both.

How long should I keep my 1099-DIV?

Keep a 1099-DIV at least 3 years after filing the related return, matching the IRS audit window. If it reports nondividend distributions in Box 3, hold it longer — it lowers your cost basis, so you'll need it to calculate gain when you eventually sell the investment, plus a few years after.

Tax

Form 1099-DIV

Form 1099-DIV is an IRS information return reporting dividends and distributions paid to an investor during the tax year. Brokerages, mutual funds, and corporations issue it when total dividends or distributions reach $10 or more, breaking out ordinary dividends, qualified dividends, capital gain distributions, and any tax withheld.

Payers must issue Form 1099-DIV to any recipient paid $10 or more in dividends or other distributions during the tax year.

Source: IRS — Instructions for Form 1099-DIV

Written & maintained by the Granite team · Last updated June 2026

Overview

Form 1099-DIV, "Dividends and Distributions," is issued by the payer of the dividends — typically a brokerage, mutual fund company, or a corporation that paid dividends directly. The payer files a copy with the IRS and sends you a copy, generally by January 31 (or mid-February when bundled into a consolidated brokerage 1099). You receive one for each account or payer that distributed $10 or more in dividends, or that withheld any federal tax. You won't get one for dividends earned inside tax-deferred accounts like a 401(k) or IRA.

The form separates dividend income into categories that are taxed differently: Box 1a reports total ordinary dividends, Box 1b breaks out the qualified portion taxed at lower long-term capital-gains rates (0%, 15%, or 20%), and Box 2a reports capital gain distributions. You don't file the 1099-DIV itself — you use its boxes to report income on Schedule B and your Form 1040. Reinvested dividends count too: they're taxable even though you never received the cash.

When you’ll get your Form 1099-DIV

You hold stocks, mutual funds, or ETFs in a taxable brokerage account that paid $10 or more in dividends during the year
A mutual fund passed through capital gain distributions, even if you didn't sell any shares
A corporation you own shares in paid you dividends directly
You received a return of capital (nondividend distribution) from an investment
Federal income tax was withheld from your dividend payments (backup withholding)
You paid foreign taxes on dividends from international holdings and may be eligible for a credit

What’s on your Form 1099-DIV

These are the fields Granite reads and extracts automatically the moment you upload one.

Payer name: The brokerage, mutual fund, or corporation that paid the dividends and issued the form.
Payer's TIN: The payer's federal tax ID number, used by the IRS to match the form to the issuer.
Recipient name & TIN: Your name and Social Security number or taxpayer ID; the TIN is usually masked except the last four digits.
Box 1a — Total ordinary dividends: The full amount of taxable dividends paid to you during the year. This is the headline number and the one that's always required.
Box 1b — Qualified dividends: The portion of Box 1a that meets holding-period rules and is taxed at lower long-term capital-gains rates rather than ordinary rates.
Box 2a — Total capital gain distributions: Capital gains a mutual fund or REIT passed through to you, reported even if you never sold a share.
Box 3 — Nondividend distributions: A return of your own invested capital, generally not taxable now but it reduces your cost basis in the holding.
Box 4 / Box 7 — Tax withheld & foreign tax paid: Box 4 is federal income tax already withheld (backup withholding); Box 7 is foreign tax paid, which may qualify for a foreign tax credit.

How long to keep it

At least 3 years after the tax return is filed; longer if it involves cost-basis tracking

Three years matches the standard IRS audit window, but a 1099-DIV with Box 3 nondividend distributions adjusts your cost basis, so keep it as long as you own the holding plus several years after you sell — you'll need it to prove your basis when you eventually report the sale.

How Granite handles your Form 1099-DIV

Drop a 1099-DIV into Granite and it's recognized as a Form 1099-DIV on upload, then it extracts the payer name, tax year, Box 1a ordinary dividends, Box 1b qualified dividends, Box 2a capital gain distributions, and any withholding. It auto-titles the file "[Payer] [Year] 1099-DIV," files it into your tax-year collection and a payer collection, and flags likely duplicates so two copies of the same consolidated 1099 don't pile up. Search "dividends" or the brokerage name and it surfaces instantly.

FAQ

Form 1099-DIV: common questions

What is a 1099-DIV?: A 1099-DIV is an IRS form that reports dividends and distributions paid to you by a brokerage, mutual fund, or corporation during the tax year. It breaks income into ordinary dividends (Box 1a), qualified dividends (Box 1b), and capital gain distributions (Box 2a), and shows any federal or foreign tax withheld.
Why would I get a 1099-DIV?: You get a 1099-DIV when a brokerage, mutual fund, or corporation paid you $10 or more in dividends or distributions during the year, or withheld any federal tax. A mutual fund that passed through capital gain distributions also triggers one — even if you never sold a share. You won't receive one for dividends inside a 401(k) or IRA.
Do I have to report a 1099-DIV on my tax return?: Yes. You don't file the 1099-DIV itself, but you must report its income on your return — use the boxes to fill out Schedule B (if dividends exceed $1,500) and carry totals to Form 1040. You must report all dividend income even if a payer didn't send a form, including dividends that were automatically reinvested.
What's the difference between Box 1a and Box 1b on a 1099-DIV?: Box 1a is your total ordinary dividends — the full taxable amount. Box 1b, qualified dividends, is a subset of Box 1a that met IRS holding-period rules and is taxed at lower long-term capital-gains rates of 0%, 15%, or 20%. Box 1b is never larger than Box 1a; it's a portion of it, not an additional amount.
Is a 1099-DIV the same as a 1099-INT?: No. A 1099-DIV reports dividends and distributions from stocks, mutual funds, and ETFs. A 1099-INT reports interest income from bank accounts, CDs, and bonds. They're separate forms for separate income types, though a consolidated brokerage statement may bundle both.
How long should I keep my 1099-DIV?: Keep a 1099-DIV at least 3 years after filing the related return, matching the IRS audit window. If it reports nondividend distributions in Box 3, hold it longer — it lowers your cost basis, so you'll need it to calculate gain when you eventually sell the investment, plus a few years after.

Sources

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