skip navigation
Search Help
Navigation Help

Tax Map Index

Tax Reform
Tax Topic Index

Tax Topic Index

Affordable Care Act
Tax Topic Index

Exempt Organization
Tax Topic Index

Tax Topics

About Tax Map Website
Publication 17

Chapter 8
Dividends and Other Distributions(p62)

What’s New(p62)

At the time this publication went to print, Congress was considering legislation that would do the following.
  1. Provide additional tax relief for those affected by certain 2018 disasters.
  2. Extend certain tax benefits that expired at the end of 2017 and that currently can’t be claimed on your 2018 tax return.
  3. Change certain other tax provisions.
To learn whether this legislation was enacted, resulting in changes that affect your 2018 tax return, go to Recent Developments at


Foreign-source income.(p62)
If you are a U.S. citizen with dividend income from sources outside the United States (foreign-source income), you must report that income on your tax return unless it is exempt by U.S. law. This is true whether you reside inside or outside the United States and whether or not you receive a Form 1099 from the foreign payer.

Automatic 6-month extension. If you receive your Form 1099 reporting dividends or other distributions late and you need more time to file your tax return, you can request a 6-month extension of time to file. See Automatic Extension in chapter 1.
This chapter discusses the tax treatment of:
This chapter also explains how to report dividend income on your tax return.
Dividends are distributions of money, stock, or other property paid to you by a corporation or by a mutual fund. You also may receive dividends through a partnership, an estate, a trust, or an association that is taxed as a corporation. However, some amounts you receive that are called dividends are actually interest income. (See Dividends that are actually interest in chapter 7.)
Most distributions are paid in cash (or check). However, distributions can consist of more stock, stock rights, other property, or services.


Useful items

You may want to see:

 514  Foreign Tax Credit for Individuals
 550  Investment Income and Expenses
Form (and Instructions)
 Schedule B (Form 1040) : Interest and Ordinary Dividends
For these and other useful items, go to

General Information(p62)

This section discusses general rules for dividend income.

Tax for certain dependent children.(p62)

The tax for certain dependent children under age 18 (and certain older children) with $2,100 of unearned income is no longer taxed at the parent’s tax rate. This change in figuring the tax for certain dependent children is in effect for tax years 2018 through 2025 as a result of the Tax Cuts and Jobs Act. See the Instructions for Form 8615 for more information.
For more information, see chapter 30.

Beneficiary of an estate or trust.(p62)

Dividends and other distributions you receive as a beneficiary of an estate or trust are generally taxable income. You should receive a Schedule K-1 (Form 1041), Beneficiary's Share of Income, Deductions, Credits, etc., from the fiduciary. Your copy of Schedule K-1 (Form 1041) and its instructions will tell you where to report the income on your Form 1040.

Social security number (SSN) or individual taxpayer identification number (ITIN). (p62)

You must give your SSN or ITIN to any person required by federal tax law to make a return, statement, or other document that relates to you. This includes payers of dividends. If you don't give your SSN or ITIN to the payer of dividends, you may have to pay a penalty.
For more information on SSNs and ITINs, see Social Security Number (SSN) in chapter 1.

Backup withholding.(p62)

Your dividend income is generally not subject to regular withholding. However, it may be subject to backup withholding to ensure that income tax is collected on the income. Under backup withholding, the payer of dividends must withhold income tax on the amount you are paid, by applying the appropriate withholding rate.
Backup withholding may also be required if the IRS has determined that you underreported your interest or dividend income. For more information, see Backup Withholding in chapter 4.

Stock certificate in two or more names.(p62)

If two or more persons hold stock as joint tenants, tenants by the entirety, or tenants in common, each person's share of any dividends from the stock is determined by local law.

Form 1099-DIV.(p62)

Most corporations and mutual funds use Form 1099-DIV, Dividends and Distributions, to report the distributions you received from them during the year. Keep this form with your records. You don't have to attach it to your tax return.
Dividends not reported on Form 1099-DIV.(p62)
Even if you don't receive a Form 1099-DIV, you must still report all your taxable dividend income. For example, you may receive distributive shares of dividends from partnerships or S corporations. These dividends are reported to you on Schedule K-1 (Form 1065), Partner's Share of Income, Deductions, Credits, etc., and Schedule K-1 (Form 1120S), Shareholder's Share of Income, Deductions, Credits, etc.
Reporting tax withheld.(p62)
If tax is withheld from your dividend income, the payer must give you a Form 1099-DIV that indicates the amount withheld.
If someone receives distributions as a nominee for you that person should give you a Form 1099-DIV, which will show distributions received on your behalf.

Form 1099-MISC.(p62)

Certain substitute payments in lieu of dividends or tax-exempt interest received by a broker on your behalf must be reported to you on Form 1099-MISC, Miscellaneous Income, or a similar statement. See Reporting Substitute Payments under Short Sales in chapter 4 of Pub. 550 for more information about reporting these payments.

Incorrect amount shown on a Form 1099. (p62)

If you receive a Form 1099 that shows an incorrect amount or other incorrect information, you should ask the issuer for a corrected form. The new Form 1099 you receive will have the "CORRECTED" box checked.

Dividends on stock sold. (p62)

If stock is sold, exchanged, or otherwise disposed of after a dividend is declared but before it is paid, the owner of record (usually the payee shown on the dividend check) must include the dividend in income.

Dividends received in January. (p62)

If a mutual fund (or other regulated investment company) or real estate investment trust (REIT) declares a dividend (including any exempt-interest dividend or capital gain distribution) in October, November, or December payable to shareholders of record on a date in one of those months but actually pays the dividend during January of the next calendar year, you are considered to have received the dividend on December 31. You report the dividend in the year it was declared.