What Form 1099-DIV does
Form 1099-DIV reports dividend payments and capital gains distributions you received from stocks, mutual funds, or other investments during the year. Your brokerage or investment platform issues this automatically.

Ordinary vs. qualified dividends
This is the detail that actually affects your tax bill: dividends reported on this form are split into ordinary dividends (taxed at your regular income tax rate) and qualified dividends (taxed at the lower long-term capital gains rate). The form itself shows this breakdown; it’s not something you have to calculate yourself, but it’s worth understanding since it directly affects what you owe. Your dedicated tax preparers at Luminary can help you understand how your dividends are split.

Who receives one
Anyone who received $10 or more in dividends or distributions from a brokerage, mutual fund, or similar investment account during the year.

What to do with it
Amounts from your 1099-DIV get reported on your Form 1040, and depending on the amount, may require an additional schedule.

How Luminary can help
If you have investment income alongside business or wage income, we make sure it’s all reported together correctly, and help you understand the tax impact of dividend income as part of your broader financial picture; not just at filing time, but as part of ongoing planning. Find out more on our individuals or services page.