Form 1099-DIV

What is Form 1099-DIV?

Form 1099-DIV is a tax form used in the United States by banks and other financial institutions to report dividends and other distributions to taxpayers as well as to the Internal Revenue Service (IRS). Dividends are typically distributions of income that a corporation pays to its shareholders out of its profits. Form 1099-DIV breaks down the total amount of dividends paid into various categories, such as qualified dividends and ordinary dividends, and may also include information on foreign taxes paid and federal income tax withheld. This form is sent to individuals who receive $10 or more in dividends during the tax year, and it is used to complete the appropriate sections of the individual's tax return.

Who is required to file Form 1099‑DIV?

Any bank, brokerage, mutual fund, REIT, corporation, or other entity (domestic or foreign) that actually pays dividend‑type distributions during the year must prepare and file  Form 1099‑DIV.

File a separate form for each recipient if, in the calendar year, you:
• Paid $10 or more in ordinary or qualified dividends, capital‑gain distributions, or tax‑exempt interest dividends;
• Distributed $600 or more as part of a corporate liquidation;
• Withheld any amount of federal income tax (backup withholding) on dividend payments, even if total dividends were under $10.

Due dates
• Furnish Copy B to the shareholder/investor by Friday, January 31^st, 2025.
• File Copy A with the IRS by Friday, February 28^th, 2025 (paper) or Monday, March 31^st, 2025 (electronic).

Shareholders do not file Form 1099‑DIV; instead, they transfer the amounts shown to their individual tax return (e.g., Schedule B or D).
The responsibility for completing, furnishing, and filing the form—and retaining a copy—rests solely with the paying entity.

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When is the deadline to submit paper form 1099-DIV to the IRS?

The deadline for financial institutions, banks, and other entities to submit Form 1099-DIV to the IRS is Friday, January 31^st, 2025. If the deadline falls on a weekend or legal holiday, the deadline may be extended to the next business day.

When is the deadline to e-file form 1099-DIV to the IRS?

For those choosing to e-file Form 1099-DIV, the deadline is generally extended. The deadline for e-filing Form 1099-DIV with the IRS is Monday, March 31^st, 2025. E-filing can offer a more streamlined process, and the extended deadline provides additional time for those responsible for filing the form

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Are there state requirements for Form 1099‑DIV?

Although Form 1099‑DIV is a federal information return, most states rely on it to administer their own income‑tax laws. Each state sets its own rules for when, how, and to whom the form must be submitted. Below are the factors you should check for every state in which you pay dividends:

• Separate state filing vs. reliance on the IRS
  Separate filing required: A number of states (e.g., CA, DC, NJ, NY, PA) require you to file a copy of Form 1099‑DIV—or a state‑specific equivalent—directly with the state revenue department.
  No separate filing: Many states accept data forwarded by the IRS through the Combined Federal/State Filing (CF/SF) Program, eliminating an extra submission step.
  Always confirm whether a state participates in CF/SF and whether it still wants its own e‑file or paper copy; participation alone does not necessarily waive every requirement.
• State filing deadlines
  Copy B to the payee is due to investors by Friday, January 31^st, 2025 (same as federal).
  State agency deadlines can range from January 31 to March 31; several states match the IRS electronic due date of Monday, March 31^st, 2025, while others set an earlier date in February.
  If a state requires withholding (see below), a quarterly or annual reconciliation may also be due.
• State income‑tax withholding
  Roughly a dozen states require backup withholding on certain dividend payments made to residents (and in some cases non‑residents) when a valid taxpayer identification number is missing or when federal backup withholding applies.
  Withheld state tax must be reported on Form 1099‑DIV (Box 14) and remitted according to that state’s deposit schedule.
• Electronic vs. paper filing thresholds
  Many states mandate electronic filing when you issue as few as 10–25 combined 1099 forms.
  Some abolish paper filing entirely—meaning all Form 1099‑DIV returns must be e‑filed, even if you are submitting only one form.
• Penalties for non‑compliance
  States generally impose monetary penalties that mirror or exceed federal amounts for late, missing, or incorrect forms.
  Additional interest and civil penalties may apply if required state tax was withheld but not remitted on time.
• Resources
  Use the IRS CF/SF participation list and each state’s Department of Revenue website for the current year’s rules.
  BoomTax’s state filing deadline chart and penalty guide provide up‑to‑date summaries in one place.

Bottom line: Verify the current‑year requirements for every state in which you pay dividends; relying on federal rules alone may leave you exposed to late‑filing assessments and withholding liabilities.

When is the reicpient deadline for Form 1099-DIV?

Entities must furnish Form 1099-DIV to the recipients of the dividends, by Friday, January 31^st, 2025. This allows recipients to have the information they need to complete their personal income tax returns.

Final remarks to be aware of for Form 1099-DIV

Here are some special circumstances to be aware of for filing form 1099-DIV.

1. Threshold for Reporting: Dividends of $10 or more must be reported on Form 1099-DIV. Lower amounts are not required to be reported.
2. Multiple Accounts: If an individual has multiple accounts or investments with an entity, special care must be taken to accurately report the dividends for each.
3. Backup Withholding: In some cases, the payer may be required to withhold federal income tax, known as "backup withholding." This might be necessary if the payee has not provided a correct taxpayer identification number (TIN).
4. State Reporting: In addition to federal reporting requirements, there may be state-specific rules and regulations that must be adhered to. This can vary widely by state, so it’s essential to understand the local requirements.
5. Copy to Recipient: A copy of Form 1099-DIV must be sent to the recipient of the dividends, by Friday, January 31^st, 2025.
6. Recordkeeping: Entities must keep copies of the 1099-DIV forms filed for at least three years, as they may be required to provide them to the IRS upon request.
7. Foreign Accounts: Special rules may apply for foreign investors or for U.S. citizens receiving dividends from foreign sources. Understanding the requirements for foreign accounts is crucial to ensure compliance with all applicable laws.