However, even when dividends are reinvested, you receive a 1099-DIV with the dividends reported on it.This schedule is being provided as a courtesy so that you can assist shareholders in calculating the tax basis of their shares.In other words, maintain a record of how much you earned in case you don’t receive a 1099-DIV.
Form 1099-DIV is one form you get when your investments pay out dividends and distributions.
If you’re like me, it means you spend a little more quality time with tax software each year. But do you really understand what is reported in each box of a 1099-DIV?
Shareholders should consult their Forms 1099-DIV as provided previously for each year for dollar amounts, and shareholders must contact their tax advisors.
The following Q&A and Cost Basis Calculator are designed to help you understand the tax implications of the initial liquidating distribution of $6.20 per share paid to shareholders in December 2016 and the remaining liquidating distributions.
Specifically, it is important to understand the different types of dividends, what you can expect as far as paying taxes on them, and how to read the 1099-DIV tax form so you’re adequately prepared.