Types of Distributions

Corporations make several types of distributions to their shareholders. Although most dividends are paid in cash, others are paid in property, services, or additional shares of stock.

The corporate distributions that VITA/TCE tax preparers may handle are:

• Ordinary dividends
• Capital gain distributions
• Nontaxable dividends and distributions

Other types of distribution income include:

• Dividend reinvestment
• Return of capital
• Stock dividends

	Most corporations use Form 1099-DIV to report distributions to shareholders. Taxpayers who receive corporate distributions other than ordinary dividends, nontaxable distributions, and capital gain distributions are not eligible for VITA/TCE assistance and should seek a professional tax preparer to complete their returns.