How to Claim a Dividend on Taxes

A dividend is a portion of a company’s earnings that it pays out to stockholders because they invested in the company. Dividends are paid based on how many stocks you own, and the total amount the company will give out as dividends. If you received $10 or more in dividends from one source, that source is supposed to send you a 1099-DIV form detailing the dividends you received. Even if you do not receive this form you are still required to claim the dividends on your tax returns. You will need to know the value of the dividends you received and who you received them from.

List the name of each payer you received dividends from in Part II, Line 5, of Form 1040 Schedule B. You may list more than one payer per line if necessary but you must clearly indicate the amount paid next to each name.

List the amounts of each dividend paid in the right column of Line 5. Total all values in the column on Line 6.

Complete Part III if the total of Line 6 is greater than $1,500. Part III is made up of two yes or no questions. The first asks whether you have any authority over any foreign financial account, for example if you had a savings account in a foreign country. The second asks if you received a distribution from, granted, or had transferred to you a foreign trust account. For most people the answer to both these questions will be no.

Copy the value from Line 6 of your Schedule B to Line 9a of your Form 1040. Continue filling out your Form 1040 as normal. Attach the Schedule B to your completed 1040 when you mail it to the IRS.


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