Instructions for Form 1099-DIV (Rev. December 2027)

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Instructions for Form
1099-DIV
(Rev. December 2027)
Dividends and Distributions
Section references are to the Internal Revenue Code
unless otherwise noted.

Future Developments
For the latest information about developments related to
Form 1099-DIV and its instructions, such as legislation
enacted after they were published, go to IRS.gov/
Form1099DIV.
You can get Pub. 1099, General Instructions for Certain
Information Returns at IRS.gov/Pub1099.

Address fields. For the Payer’s and Recipient’s
information, we separated the address fields into
individual entry boxes.
Change in reporting threshold for liquidation dis­
tributions. Beginning in tax year 2026, the reporting
threshold for liquidation distributions was changed from
$600 to $2,000 which will be indexed annually for inflation.
For the current-year threshold amount, go to IRS.gov/
InflationAdjustment.

Reminders
In addition to these specific instructions, you should
also use Pub. 1099. Those general instructions include
information about the following topics.
• Who must file.
• When and where to file.
• Electronic reporting.
• Corrected and void returns.
• Statements to recipients.
• Taxpayer identification numbers (TINs).
• Backup withholding.
• Penalties.
• The definitions of terms applicable for the purposes
of chapter 4 of the Internal Revenue Code that are
referenced in these instructions.
• Other general topics.
Continuous-use revisions. Use the December 2027
revision of Form 1099-DIV and these instructions to file
2027 information with the IRS in early 2028. Also use
them to furnish the information to the recipient. Continue
to use these revisions for subsequent years until we issue
a superseding revision. Do not use these revisions for
prior years.
E-filing returns. The Taxpayer First Act of 2019
authorized the Department of the Treasury and the
IRS to issue regulations that reduce the 250-return
e-file threshold. T.D. 9972, published February 23,
Jul 2, 2026

Information Returns Intake System (IRIS). The IRS
has developed IRIS, an online portal for e-filing
information returns. Go to IRS.gov/IRIS for more
information.
Online fillable Copies 1, B, and 2. To ease
statement furnishing requirements, Copies 1, B, and 2
are fillable online in a PDF format, available at IRS.gov/
Form1099DIV. You can complete these copies online for
furnishing statements to recipients and for retaining in
your own files.

Specific Instructions

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,
• For whom you have withheld and paid any foreign tax
on dividends and other distributions on stock,
• For whom you have withheld any federal income tax on
dividends under the backup withholding rules, or
• To whom you have paid $2,000 or more in money or
other property as part of a liquidation.
Note: The liquidation distribution threshold amount will
be adjusted annually for inflation. For the current-year
threshold amount, go to IRS.gov/InflationAdjustment.

Dividends

If you make a payment that may be a dividend but you
are unable to determine whether any part of the payment
is a dividend by the time you must file Form 1099-DIV,
the entire payment must be reported as a dividend. See
the regulations under section 6042 for a definition of
dividends.

Exceptions

You are not required to report on Form 1099-DIV the
following.
1. Taxable dividend distributions from life insurance
contracts and employee stock ownership plans. These are
reported on Form 1099-R, Distributions From Pensions,
Annuities, Retirement or Profit-Sharing Plans, IRAs,
Insurance Contracts, etc..
2. Substitute payments in lieu of dividends. For
payments received by a broker on behalf of a customer
in lieu of dividends as a result of a loan of a

Instructions for Form 1099-DIV (Rev. 12-2027) Catalog Number 27978B
Department of the Treasury Internal Revenue Service www.irs.gov

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What’s New

2023, lowered the e-file threshold to 10 (calculated
by aggregating all information returns), effective for
information returns required to be filed on or after January
1, 2024. Go to IRS.gov/InfoReturn for e-file options.

TREASURY/IRS AND OMB USE ONLY DRAFT
customer’s securities, see the instructions for box 8 under
Specific Instructions for Form 1099-MISC in the current
Instructions for Forms 1099-MISC and 1099-NEC.
Tip: Substitute payments in lieu of dividends may be
reported on a composite statement to the recipient with
Form 1099-DIV. See Pub. 1179.
3. Payments made to certain payees. These include
a corporation, tax-exempt organization, IRA, Archer MSA,
health savings account (HSA), U.S. agency, state, District
of Columbia, U.S. territory, or registered securities or
commodities dealer.
Caution: Certain distributions commonly referred to as
“dividends” are actually interest and are to be reported
on Form 1099-INT, Interest Income. These include
so-called dividends on deposit or on share accounts in
cooperative banks, credit unions, domestic building and
loan associations, domestic and federal savings and loan
associations, and mutual savings banks.
Except as provided below, qualified dividends are
dividends paid during the tax year from domestic
corporations and qualified foreign corporations.
Exceptions. The following dividends are not qualified
dividends.
• Dividends the recipient received on any share of stock
held for less than 61 days during the 121-day period
that began 60 days before the ex-dividend date. See
the instructions for box 1b, later. When determining the
number of days the recipient held the stock, you cannot
count certain days during which the recipient’s risk of
loss was diminished. The ex-dividend date is the first
date following the declaration of a dividend on which the
purchaser of a stock is not entitled to receive the next
dividend payment. When counting the number of days
the recipient held the stock, include the day the recipient
disposed of the stock but not the day the recipient
acquired it.
• Dividends attributable to periods totaling more than 366
days that the recipient received on any share of preferred
stock held for less than 91 days during the 181-day period
that began 90 days before the ex-dividend date. See
the instructions for box 1b, later. When determining the
number of days the recipient held the stock, you cannot
count certain days during which the recipient’s risk of
loss was diminished. Preferred dividends attributable to
periods totaling less than 367 days are subject to the
61-day holding period rule above.
• Dividends that relate to payments that the recipient is
obligated to make with respect to short sales or positions
in substantially similar or related property.
• Dividends paid by a regulated investment company
(RIC) that are not treated as qualified dividend income
under section 854.
• Dividends paid by a real estate investment trust (REIT)
that are not treated as qualified dividend income under
section 857(c).
• Deductible dividends paid on employer securities. See
Section 404(k) Dividends, later.
Qualified foreign corporation. A foreign corporation
is a qualified foreign corporation if it is:
2

Tip: For a list of income tax treaties of the United States
that (a) are comprehensive, (b) include an information
exchange program, and (c) have been determined by
the Department of the Treasury to be satisfactory for
this purpose, see Notice 2011-64, 2011-37 I.R.B. 231,
available at IRS.gov/irb/2011-37_IRB#NOT-2011-64.
If the foreign corporation does not meet either (1) or
(2) above, then it may be treated as a qualified foreign
corporation for any dividend paid by the corporation if
the stock associated with the dividend paid is readily
tradable on an established securities market in the
United States. See Notice 2003-71, 2003-43 I.R.B. 922,
available at IRS.gov/irb/2003-43_IRB#NOT-2003-71, for
more information on when stock may be considered to
be readily tradable. For additional requirements that must
be met, see Notice 2006-3, 2006-3 I.R.B. 306, available at
IRS.gov/irb/2006-03_IRB#NOT-2006-3.
A foreign corporation will not be considered a qualified
foreign corporation if:
1. The foreign corporation is a passive foreign
investment company (as defined in section 1297) for the
tax year in which the dividend was paid or the prior year;
or
2. The foreign corporation first became a surrogate
foreign corporation (as defined in section 7874(a)(2)(B))
after December 22, 2017, but is not treated as a domestic
corporation under section 7874(b).
Tip: For guidance on the extent to which distributions,
inclusions, and other amounts received by, or included in
the income of, individual shareholders as ordinary income
from foreign corporations subject to certain anti-deferral
regimes may be treated as qualified dividends, see Notice
2004-70, 2004-44 I.R.B. 724, available at IRS.gov/irb/
2004-44_IRB#NOT-2004-70.

Section 404(k) Dividends

Report as ordinary dividends in box 1a of Form 1099-DIV
payments of 404(k) dividends directly from the corporation
to the plan participants or their beneficiaries.
Section 404(k) dividends are not subject to backup
withholding. Also, these dividends are not eligible for
the reduced capital gains rates (see Exceptions under
Qualified Dividends, earlier).

RICs and REITs
Qualified dividends. If any part of the total ordinary
dividends reported in box 1a is qualified dividends, report
the qualified dividends in box 1b.
Tip: For guidance pertaining to dividends of RICs and
REITs, see Notice 2004-39, 2004-22 I.R.B. 982, available
at IRS.gov/irb/2004-22_IRB#NOT-2004-39, modified by
Notice 2015-41, 2015-24 I.R.B. 1058, available at
IRS.gov/irb/2015-24_IRB#NOT-2015-41; and Rev. Rul.
Instructions for Form 1099-DIV (Rev. 12-2027)

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Qualified Dividends

1. Incorporated in a territory of the United States, or
2. Eligible for benefits of a comprehensive income tax
treaty with the United States that the Department of the
Treasury determines is satisfactory for this purpose and
that includes an exchange of information program.

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Qualified REIT dividends. Certain taxpayers are entitled
to a deduction under section 199A computed by reference
to several types of income, including qualified REIT
dividends. A qualified REIT dividend is generally a
dividend from a REIT received during the tax year that
is not a capital gain dividend or a qualified dividend.
However, a qualified REIT dividend does not include
any REIT dividend received with respect to any share
of REIT stock that is held for 45 days or less during
the 91-day period beginning on the date that is 45 days
before the date on which such share became ex-dividend
with respect to the dividend. When counting the number
of days the recipient held the stock, include the day
the recipient disposed of the stock, but do not include
the day the recipient acquired the stock or certain days
during which the recipient’s risk of loss was diminished.
In addition, a qualified REIT dividend does not include
any dividend on shares of REIT stock to the extent the
recipient is under an obligation (whether pursuant to a
short sale or otherwise) to make related payments with
respect to positions in substantially similar or related
property.
Section 199A dividends. A RIC that receives qualified
REIT dividends in a tax year may generally pay section
199A dividends for that year, which certain shareholders
of the RIC that meet holding period requirements may
treat as qualified REIT dividends for purposes of section
199A. The amount of section 199A dividends that a RIC
may pay for a tax year is limited to the amount of qualified
REIT dividends includible in the RIC’s taxable income for
the year, reduced by properly allocable deductions. See
Regulations section 1.199A-3(d) for other limits and rules,
including holding period requirements.
Dividend payment delayed until January. If a RIC
or a REIT declares a dividend in October, November,
or December payable to shareholders of record on a
specified date in such a month, the dividends are treated
as paid by the RIC or REIT and received by the recipients
on December 31 of such year as long as the dividends
are actually paid by the RIC or REIT during January of the
following year. Report the dividends on Form 1099-DIV
for the year preceding the January they are actually paid.
See sections 852(b)(7) and 857(b)(9) for RICs and REITs,
respectively.
If a dividend paid in January is subject to backup
withholding, withhold when the dividend is actually
paid. Therefore, backup withhold in January, deposit the
withholding when appropriate, and reflect it on Form
945, Annual Return of Withheld Federal Income Tax,
for the year withheld. However, because the dividend is
reportable on Form 1099-DIV for the prior year, the related
backup withholding is also reportable on the prior year
Form 1099-DIV.
Qualified small business stock—RICs. Under section
1202, a 50% exclusion may be allowed on the gain
from the sale or exchange of qualified small business
stock issued after August 10, 1993, and held for more
than 5 years. A 60% exclusion may be allowed if the
stock is empowerment zone business stock acquired after
Instructions for Form 1099-DIV (Rev. 12-2027)

December 21, 2000, and before December 31, 2018. For
qualified small business stock acquired after February 17,
2009, and before September 28, 2010, the exclusion is
75%. For qualified small business stock acquired on or
after September 28, 2010, and before January 1, 2014,
the exclusion is 100%. For purposes of the 75% and
100% exclusions, the acquisition date shall be the first day
on which the stock was held by the taxpayer determined
after the application of section 1223.
If any part of the capital gain distribution reported
in box 2a may qualify for this exclusion (taking into
consideration the recipient’s holding period), report the
gain in box 2c, and furnish the recipient a statement that
reports separately for each designated section 1202 gain
the:
• Name of the corporation that issued the stock that was
sold,
• Date(s) on which the RIC acquired the stock,
• Date sold,
• Recipient’s part of the sales price,
• Recipient’s part of the RIC’s basis in the stock, and
• Amount of the recipient’s section 1202 gain and the
exclusion percentage.
Tax credit bonds. If a RIC or REIT holds any tax credit
bonds, any bond tax credit allowed to the RIC or REIT
under section 54A or 54AA on the bond is included in the
RIC’s or REIT’s gross income as interest. See sections
54A(f) and 54AA(f)(2); and Notice 2009-15, 2009-6 I.R.B.
449, available at IRS.gov/irb/2009-06_IRB#NOT-2009-15.
RICs can make an election to distribute any bond tax
credits allowed under sections 54A and 54AA to its
shareholders or beneficiaries. See section 853A. Report
bond tax credits distributed by a RIC or REIT on Form
1097-BTC, Bond Tax Credit.
If a RIC or REIT distributes any credits with respect
to its stock, the RIC or REIT must report the distributed
credits that are treated as dividends on Form 1099-DIV.
See Notice 2010-28, 2010-15 I.R.B. 541, available at
IRS.gov/irb/2010-15_IRB#NOT-2010-28.
Section 897 gain. If a RIC described in section 897(h)
(4)(A)(ii) or a REIT disposes of a U.S. real property
interest (USRPI) at a gain, any distributions made to
the extent attributable to such gain shall be treated as
gain recognized by the recipient from the disposition of a
USRPI (that is, the look-through rule).
If any part of the ordinary dividend reported in box 1a or
capital gain distributions reported in box 2a is attributable
to section 897 gains, report that gain in box 2e and box 2f,
respectively.
See section 897 for the definition of USRPI and the
exceptions to the look-through rule.
Note: Only RICs and REITs should complete boxes 2e
and 2f. Boxes 2e and 2f do not need to be completed for
recipients that are U.S. individuals.

Restricted Stock

For information about reporting dividends on restricted
stock, see Rev. Proc. 80-11, 1980-1 C.B. 616,
distinguished by Rev. Proc. 83-38, 1983-1 C.B. 773; and
Rev. Rul. 83-22, 1983-1 C.B. 17.
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2005-31, 2005-21 I.R.B. 1084, available at IRS.gov/irb/
2005-21_IRB#RR-2005-31.

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Widely Held Fixed Investment Trusts (WHFITs)

Trustees and middlemen must report the gross amount of
dividend income attributable to a trust income holder (TIH)
in the appropriate box on Form 1099-DIV if that amount
exceeds $10. If the trustee or middleman provides WHFIT
information using the safe harbor rules in Regulations
section 1.671-5(f)(1) or (g)(1), the trustee or middleman
must determine the amounts reported on all Forms 1099
under section 1.671-5(f)(2) or (g)(2), as appropriate.

Statements to Recipients

If you are required to file Form 1099-DIV, you must provide
a statement to the recipient. For information about the
requirement to furnish statements to recipients, see part M
in Pub. 1099.
Truncating recipient’s TIN on payee statements.
Pursuant to Regulations section 301.6109-4, all filers
of this form may truncate a recipient’s TIN (social
security number (SSN), individual taxpayer identification
number (ITIN), adoption taxpayer identification number
(ATIN), or employer identification number (EIN)) on payee
statements. Truncation is not allowed on any documents
the filer files with the IRS. A payer’s TIN may not be
truncated on any form. See part J in Pub. 1099.

2nd TIN Not.

You may enter an “X” in this box if you were notified by the
IRS twice within 3 calendar years that the payee provided
an incorrect TIN. If you mark this box, the IRS will not send
you any further notices about this account.
However, if you received both IRS notices in the same
year, or if you received them in different years but they
both related to information returns filed for the same year,
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
second “B” notice to the taxpayer on receipt of the second
notice. See part N in Pub. 1099.

Box 1a. Total Ordinary Dividends

Enter dividends, including dividends from money market
funds, net short-term capital gains from mutual funds, and
other distributions on stock. Include reinvested dividends
and section 404(k) dividends paid directly from the
corporation. Box 1a includes amounts entered in boxes 1b
and 2e and it also includes the amount of the recipient’s
share of investment expenses that you report in box 6.
Caution: An S corporation reports as dividends on Form
1099-DIV only distributions made during the tax year out
of accumulated earnings and profits. See section 1368 for
more information.

Box 1b. Qualified Dividends

Enter the portion of the dividends in box 1a that qualifies
for the reduced capital gains rates. Include dividends for
which it is impractical to determine if the section 1(h)(11)
(B)(iii) holding period requirement has been met. See
Qualified Dividends and the Caution, earlier.
You must report a dividend paid by a foreign
corporation according to the guidance provided
in Notice 2003-79, 2003-50 I.R.B. 1206, available
at IRS.gov/irb/2003-50_IRB#NOT-2003-79, and Notice
2004-71, 2004-45 I.R.B. 793, available at IRS.gov/irb/
2004-45_IRB#NOT-2004-71, which contain the rules for
reporting the dividend for tax years 2003 and 2004. These
rules are extended for 2005 and subsequent tax years by
Notice 2006-3, 2006-3 I.R.B. 306, available at IRS.gov/irb/
2006-03_IRB#NOT-2006-3.
Caution: Qualified dividends cannot be less than zero.
Do not include an amount less than zero in box 1b.

Box 2a. Total Capital Gain Distr.

Enter total capital gain distributions (long-term). Include all
amounts shown in boxes 2b, 2c, 2d, and 2f.

Tip: For more information about reporting amounts in
boxes 2b, 2c, 2d, and 2f, see section 1(h).

Box 2b. Unrecap. Sec. 1250 Gain

Enter any amount included in box 2a that is an
unrecaptured section 1250 gain from certain depreciable
real property.

Box 2c. Section 1202 Gain

Enter any amount included in box 2a that is a section
1202 gain from certain qualified small business stock. See
Qualified small business stock—RICs, earlier.

Box 2d. Collectibles (28%) Gain

Tip: For information on the TIN Matching System offered
by the IRS, see Items You Should Note in Pub. 1099.

Enter any amount included in box 2a that is a 28% rate
gain from sales or exchanges of collectibles.

Account Number

Box 2e. Section 897 Ordinary Dividends

The account number is required if you have multiple
accounts for a recipient for whom you are filing more than
one Form 1099-DIV. The account number is also required
if you check box 11. See Box 11, later. Additionally, the

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Enter any amount included in box 1a that is section 897
gain from dispositions of USRPI. See Section 897 gain,
earlier.
Instructions for Form 1099-DIV (Rev. 12-2027)

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Due date exception and other requirements for fur­
nishing the tax information statement to TIHs. A
tax information statement that includes the information
provided to the IRS on all Forms 1099 filed for the
calendar year with respect to the TIH’s interest in the
WHFIT, as well as additional information identified in
Regulations section 1.671-5(e), must be provided to the
TIHs. The written tax information furnished to the TIH
for the reporting tax year is due on or before March 15
of the subsequent year. The amount of an item of trust
expense that is attributable to a TIH must be included on
the tax information statement provided to the TIH and is
not required to be included in box 6 on the Form 1099-DIV.
For more filing requirements, see Pub. 1099.

IRS encourages you to designate an account number for
all Forms 1099-DIV that you file. See part L in Pub. 1099.

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Box 2f. Section 897 Capital Gain

Enter any amount included in box 2a that is section 897
gain from dispositions of USRPI. See Section 897 gain,
earlier.

to require filing a statement that elects the application of
section 853 for the tax year with the return for the tax year.
See Regulations section 1.853-4 for more information. Do
not send the statement with the Forms 1096 and 1099.

Note: Only RICs and REITs should complete boxes 2e
and 2f. Boxes 2e and 2f do not need to be completed for
recipients that are U.S. individuals.

Caution: Boxes 9 and 10 apply only to corporations
in partial or complete liquidation. Do not include these
amounts in box 1a or 1b.

Box 9. Cash Liquidation Distr.

Enter nondividend distributions, if determinable.

Enter cash distributed as part of a liquidation.

Tip: File Form 5452, Corporate Report of Nondividend
Distributions, if you are a corporation and paid
nondividend distributions to shareholders.

Box 10. Noncash Liquidation Distr.

Enter noncash distributions made as part of a liquidation.
Show the fair market value as of the date of distribution.

Box 4. Federal Income Tax Withheld

Box 11. FATCA Filing Requirement

For more information on backup withholding, including
the applicable rate, see part N in Pub. 1099.

Box 12. Exempt-Interest Dividends

Enter backup withholding. Recipients who have not
furnished their TINs to you in the manner required
are subject to backup withholding on certain dividend
payments reported on this form. Use Form W-9, Request
for Taxpayer Identification Number and Certification, to
request the TIN of the recipient. For foreign recipients,
use the applicable Form W-8. See the Instructions for
the Requester of Forms W-8BEN, W-8BEN-E, W-8ECI,
W-8EXP, and W-8IMY.

Box 5. Section 199A Dividends

Enter the qualified REIT dividends paid by a REIT or
section 199A dividends paid by a RIC to the recipient.
This amount is included in the amount reported in box 1a.
Include REIT dividends (other than capital gain dividends
and qualified dividends) for which it is impractical for
the REIT to determine whether the recipient has met
the holding period requirement described in Regulations
section 1.199A-3(c)(2)(ii). See Qualified REIT dividends,
earlier.

Box 6. Investment Expenses

Enter the recipient’s pro rata share of certain amounts
deductible by a nonpublicly offered RIC in computing
its taxable income. This amount is includible in the
recipient’s gross income under section 67(c) and must
also be included in box 1a. Do not include any investment
expenses in box 1b.

Box 7. Foreign Tax Paid

Enter foreign tax paid on dividends and other distributions
on stock. A RIC must report only the amount it elects to
pass through to the recipient. Report this amount in U.S.
dollars.

Box 8. Foreign Country or U.S. Territory

Enter the name of the foreign country or U.S. territory for
which the foreign tax was paid and reported in box 7.
RICs—Special reporting instructions. Do not
complete box 8. Under Regulations section 1.853-4,
country-by-country reporting to shareholders for the
amount reported in box 7 is not required. The requirement
to file a separate statement to the IRS has been modified
Instructions for Form 1099-DIV (Rev. 12-2027)

Check the box if you are a U.S. payer that is reporting on
Form(s) 1099 (including reporting distributions in boxes 1
through 3 and 9, 10, 12, and 13 on this Form 1099-DIV) as
part of satisfying your requirement to report with respect to
a U.S. account for the purposes of chapter 4 of the Internal
Revenue Code, as described in Regulations section
1.1471-4(d)(2)(iii)(A). In addition, check the box if you
are a foreign financial institution (FFI) reporting payments
to a U.S. account pursuant to an election described in
Regulations section 1.1471-4(d)(5)(i)(A).

Enter exempt-interest dividends from a mutual fund or
other RIC. Include specified private activity bond interest
dividends in box 13 and in the total for box 12. See the
instructions for box 13 next.

Box 13. Specified Private Activity Bond Interest
Dividends

Enter exempt-interest dividends paid by a RIC on
specified private activity bonds to the extent that the
dividends are attributable to interest on the bonds
received by the RIC minus an allocable share of the
expenses. Generally, “specified private activity bond”
means any private activity bond defined in section 141
and issued after August 7, 1986. See section 57(a)(5) for
more details.

Boxes 14–16. State Information

These boxes, and Copies 1 and 2, are provided for your
convenience only and need not be completed for the
IRS. If you withheld state income taxes on this payment,
use the state information boxes to report payments for
up to two states. Keep the information for each state
separated by the dashed line in each box. In box 14,
enter the abbreviated name of the state. In box 15,
enter the payer’s state identification number. The state
number is the payer’s identification number assigned by
the individual state. In box 16, enter the state income tax
withheld on this payment.
If a state tax department requires that you send them a
paper copy of this form, use Copy 1 to provide information
to the state tax department. Give Copy 2 to the recipient
for use in filing the recipient‘s state income tax return.

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Box 3. Nondividend Distr.