Form 1099-DIV, Dividends and Distributions
Dividends are paid to shareholders of corporations. Any shareholder that receives $10 or more in one year must report it to the IRS.

There are new boxes on 2003 dividend and distribution statements, thanks to tax-law changes enacted last May. Box 1b details qualified dividends, while box 2b is for post-May 5, 2003, capital gain distributions. Both of these amounts may be eligible for the new, 5- or 15-percent rates for some dividends and capital gains. Be sure to read the 1099-DIV and tax return instructions for guidance on how to report and figure taxes on the varying dividend and capital gains amounts.

Your Form 1099-DIV contains vital information, including:

The 1099-DIV box and what it shows If you're using Form 1040EZ If you're using Form 1040A If you're using Form 1040 1a. Ordinary dividends You can't use this form. If $1,500 or less, enter it on line 9a. If $1,500+, also enter it on Part II of Schedule 1. If $1,500 or less, enter it on line 9a. If $1,500+, also enter it on Part II of Schedule B. 1b. Qualified dividends You can't use this form. This amount might be eligible for the 5- or 15-percent tax rate. Enter it on line 9b. This amount might be eligible for the 5- or 15-percent tax rate. Enter it on line 9b. 2a. Total capital gains distributions You can't use this form. If your only capital gains are CG distributions, report the distribution amount on line 10. If you have other capital gains to report (e.g., amounts in boxes 2b, 2c, 2d), you must file the long Form 1040 and use Schedule D (see next column). If your only capital gains are CG distributions, report the distribution amount on line 10. If you have other capital gains to report, including the amounts shown in in boxes 2b, 2c and 2d (which are subject to different tax rates), you must file Schedule D with your return. 4. Federal income tax withheld. This is backup withholding, generally collected from dividend earnings or distributions if you did not provide the payer with a tax ID number. Include any Box 4 amounts in the total entered on line 7. This is backup withholding, generally collected from dividend earnings or distributions if you did not provide the payer with a tax ID number. Include any Box 4 amounts in the total entered on line 39. This is backup withholding, generally collected from dividend earnings or distributions if you did not provide the payer with a tax ID number. Include any Box 4 amounts in the total entered on line 64. 6. Foreign tax paid You can't use this form to report foreign taxes paid on dividend earnings or distributions. You can't use this form to report foreign taxes paid on dividend earnings or distributions. You might be able to claim the amount of foreign taxes paid on dividend earnings or distributions as a credit on line 47 of your 1040.

If you haven't received your Form 1099-DIVs, simply follow the same advice offered for getting your 1099-INT interest earnings information. As with the interest statements, you don't submit any Form 1099-DIV with your tax return.

Again, don't be concerned if the 1099-INT, 1099-DIV and even W-2 forms that you get from several sources all look different. Regardless of its actual layout, each variation of these forms should clearly identify the information provided by the standard box numbers described above.

The IRS doesn't care what format is used to get the information, it just wants the data.