What does Form 1099-DIV report?

Form 1099-DIV is specifically used to report dividends and distributions to shareholders from corporations and mutual funds. This form provides detailed information about the various types of dividends received, including ordinary dividends, qualified dividends, and capital gain distributions.

Understanding this form is essential for taxpayers, as it helps them accurately report their income on their tax returns. It ensures that individuals include all relevant income sources, particularly those derived from investments in stocks or mutual funds, which may be subject to different tax rates depending on the type of distribution.

The other options pertain to other types of financial information: interest income is reported on Form 1099-INT, capital gains are typically reported on Schedule D or Form 8949, and foreign financial accounts are reported through different forms including the FBAR or Form 8938, which are not associated with dividends or distributions. This specificity of Form 1099-DIV in relation to dividends and distributions is critical for correctly assessing tax liabilities connected to investment income.