Items you will need
- 1040 Form
- Schedule B
- Schedule D
If you earn part of your annual income from dividends, you will receive a 1099-DIV form from each bank, brokerage firm and other institution that paid those dividends throughout the year. A copy of each 1099-DIV form is also sent to the IRS, and matching programs are in place to make sure you report all of your dividend income. That is why it is so critical to file your 1099-DIV income properly. Failing to report all your dividend income or reporting the wrong amounts could invite unwanted attention from the IRS.
Make a list of all the banks, brokerage firms and financial institutions that pay you dividends. Check each institution off the list as you receive your 1099-DIV from that firm.
Obtain a Schedule B from the IRS website, or from your legislative office or public library. This is the schedule you will use to reocrd your dividend income.
Record the amount shown in the ordinary dividends section of each 1099-DIV form on Schedule B. Record the amount for each payor on a separate line of the Schedule B form.
Locate the capital gains distributions section of the 1099-DIV and record that amont on Schedule D. Enter each 1099-DIV on a separate line.
Add up the amounts from Schedules B and D and trasnfer those totals to your 1040 form. Enter the remainder of your income before filing your taxes.
- TAX TIME image by brelsbil from Fotolia.com