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This topic described how to determine ordinary dividend income and capital gain distributions, and where to report them.
Ordinary dividends can be reported on Form 1040A or Form 1040. All other corporate distributions must be reported on Form 1040.
Form 1099-DIV, box 1 reports dividend income to the taxpayer and IRS. A taxpayer whose total dividend income is more than $1,500 must complete Part II of either Form 1040 Schedule B or Form 1040A Schedule 1.
Form 1099-DIV, box 2a reports capital gain distributions. If no amounts appear in boxes 2b, 2c, 2d, 3, 5, 8, or 9, then the taxpayer can report the box 2a total directly on line 13 of Form 1040 or line 10 of Form 1040A. Otherwise, the taxpayer must file Form 1040 Schedule D. Taxpayers with amounts in boxes 2b, 2c, 2d, 3, 5, 8, and 9, should be referred to a professional tax preparer.
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