1099-DIV – Dividends and Distributions
Ordinary dividends from box 1a are reported on line 9a of Form 1040 or 1040A, and on Schedule B (1040) or Schedule 1 (1040A) if required. Qualified dividends from box 1b are reported on line 9b of Form 1040 or 1040A. These are dividends eligible for the 15% or 5% capital gain rates.
Capital gain distributions from box 2a are reported on Schedule D of Form 1040. But if you do not have any other capital gains or losses, and there are no amounts reported in boxes 2b, 2c, or 2d of this form, you can report the capital gain distributions from box 2a directly on line 13 of Form 1040, or line 10 of Form 1040A.
Unrecaptured section 1250 gain from box 2b goes into the “Unrecaptured Section 1250 Gain Worksheet” in the Schedule D instructions. Section 1202 gain from box 2c is gain on qualified small business stock held for over 5 years and is eligible for a 50% exclusion. You report the total gain in the long-term section of Schedule D and then, on the line directly below, you enter "Section 1202 Exclusion" in column (a) and enter 50% of the total gain as a negative amount. The 28% collectibles gain in box 2d goes into the “28% Rate Gain Worksheet” in the Schedule D instructions.
Nontaxable distributions from box 3 are returns of your cost or investment. Your basis in the stock should be reduced by these distributions for purposes of determining your gain or loss when you sell the stock. If you recover your entire cost, any additional distributions for that stock should be reported as capital gains on your tax return, even if they are shown as nontaxable distributions on the 1099-DIV.
Investment expenses from box 5 can be claimed as a miscellaneous itemized deduction on Schedule A. If there are foreign taxes paid, shown in box 6, you can claim a foreign tax credit by completing Form 1116 or you can claim the tax as an itemized deduction on Schedule A. You may be able to claim a foreign tax credit directly on Form 1040 (line 46) without completing Form 1116 if this was your only foreign source income, and your foreign taxes are not more than $300 ($600 if married filing jointly).
1099-G – Certain Government and Qualified State Tuition Program Payments
Unemployment compensation from box 1 is reported on the line for unemployment compensation on Form 1040, 1040A, or 1040EZ. State or local income tax refunds from box 2 are reported as income on line 10 of Form 1040 if you originally deducted the state or local income tax as an itemized deduction. Alternative trade adjustment assistance (ATAA) payments from box 5, and taxable grants from a federal, state or local government from box 6 are reported on the Other Income line of Form 1040, unless they relate to a business activity, in which case they would be reported on Schedule C or C-EZ, E or F, as applicable. Agriculture payments from box 7 should be reported on Schedule F, on line 6a if they are agricultural program payments, and on line 8a if they are disaster payments.
1099-H – Health Insurance Advance Payments
The total advance payments on this form are reported on Form 8885, Health Coverage Tax Credit, when you claim this credit on your annual tax return.
1099-INT – Interest Income
Interest income from box 1 is reported on line 8a of Form 1040 or 1040A, and on Schedule B (Form 1040) or Schedule 1 (1040A) if required. The early withdrawal penalty in box 2 can be claimed as a deduction on Form 1040 in determining adjusted gross income. Interest on U.S. savings bonds and Treasury obligations from box 3 is reported as tax-exempt interest income on line 8b of Form 1040 or 1040A.
Investment expenses from box 5 can be claimed as a miscellaneous itemized deduction on Schedule A. Foreign taxes shown in box 6 can be claimed as a credit on Form 1116 or as an itemized deduction on Schedule A. If this was your only foreign source income, and your foreign taxes are not more than $300 ($600 if married filing jointly) you may be able to claim the foreign tax credit directly on Form 1040 (line 46) without completing Form 1116.
1099-LTC – Long Term Care and Accelerated Death Benefits
Gross long-term care benefits from box 1 should be reported in Section C of Form 8853, Archer MSAs and Long-Term Care Insurance Contracts. Accelerated death benefits from box 2 are generally excluded from income if the insured is terminally ill. Otherwise, these benefits would also be reported on Form 8853.
1099-MISC – Miscellaneous Income
Rents from box 1 are reported on Schedule E of Form 1040. But if you provided significant services, such as housekeeping, to the tenant, or otherwise engaged in renting property as a business, the income would be reported on Schedule C or C-EZ. Royalties from box 2 are also generally reported on Schedule E, unless the royalties are earnings in your trade or business. In this case, they should be reported on Schedule C or C-EZ. Amounts from box 3 should be reported on the “Other Income” line of Form 1040, identifying the type of payment. If the income is related to a trade or business, it should be reported on Schedule C- C-EZ, E, or F, as applicable.
If an amount is reported in box 5, the fishing boat operator considers you as self-employed. You should report this amount on Schedule C or C-EZ. Medical and health care payments from box 6 should also be included on Schedule C or C-EZ. If there is an amount reported in box 7, it means that the payer did not consider you as an employee, but rather as self-employed. You need to report these earnings on Schedule C, C-EZ, or F, and also complete Schedule SE for the self-employment tax on these earnings, since social security and Medicare taxes were not withheld.
Substitute payments in lieu of dividends or interest, reported in box 8, should be reported on the Other Income line of Form 1040. If box 9 is checked, you should report any income from the sale of these consumer products on Schedule C or C-EZ. Crop insurance proceeds from box 10 should be reported on line 8 of Schedule F. Excess golden parachute payments reported in box 13 are subject to
a 20% excise tax. This tax has to be added to the total tax you report on the line for Total Tax on Form 1040, and you have to write “EPP” and the amount of the 20% excise tax on the dotted line next to the Total Tax line.
Of the gross proceeds paid to an attorney in box 14, only the taxable portion should be included on your tax return.
Box 15a, Section 409a deferrals, is the amount you deferred as a non-employee under a section 409a non-qualified deferred compensation plan. Box 15b, Section 409a income, is the income earned on the plan. The taxable portion from box 15a and the income from box 15b are included in non-employee compensation in box 7. The income from this plan is subject to an additional tax.
1099-OID – Original Issue Discount
Original issue discount is the excess of the redemption value of an obligation over its issue price, and is amortized as interest income over the term of the obligation. The amount in box 1 is the amortization of the original issue discount for the year and should be reported as interest income on your tax return. Other period interest in box 2 is interest income other than the amortization of the original issue discount, and should also be reported as interest income on your tax return.
An early withdrawal penalty reported in box 3 may be taken as a deduction for adjusted gross income on Form 1040. Original issue discount on U.S. Treasury obligations, in box 6, should be reported as interest income for federal income tax purposes, but is exempt from state and local income taxes. IRS Publication 1212 contains information regarding any adjustments that need to be made to the amount you include as income for federal tax purposes.
Investment expenses in box 7 may be claimed as a miscellaneous itemized deduction on Schedule A.
1099-PATR – Taxable Distributions Received from Cooperatives
Distributions you receive from cooperatives should generally be reported as business income on Schedule C or C-EZ, or as farm income, on Schedule F or Form 4835, as applicable. But patronage dividends you receive on property bought for your personal use should not be included in your taxable income. And patronage distributions on capital assets or depreciable property bought for business use should be treated as a reduction in the basis of the property.
Boxes 7, 8 and 10 show credits passed through by the cooperative that can be claimed on the appropriate tax form: Form 3468 – Investment Credit, 5884- Work Opportunity Credit, 6478 – Small Ethanol Producer Credit, 8844 – Empowerment Zone and Renewal Community Employment Credit, 8845 – Indian Employment Credit, 8861 – Welfare-To-Work Credit, or 8896 – Low Sulfur Fuel Diesel Fuel Production Credit. The Alternative Minimum Tax (AMT) adjustment in box 9 should be reported on Form 6251.
1099-Q – Payments from Qualified Education Programs
Gross distributions from a qualified tuition program (529 plan) or from a Coverdell Education Savings Account reported in box 1 include both earnings (reported in box 2) and basis (reported in box 3). The distribution would normally not be taxable if you used it to pay for qualified education expenses, made a transfer between trustees, or rolled over the distribution into another qualified program within 60 days. Otherwise you may have to include it in Other Income on Form 1040. There may also be an additional tax on the amount you have to include in income. The additional tax would be reported on Schedule 5329.
1099-R – Distributions from Pensions, Annuities, Retirement or Profit-Sharing Plans, IRAs, Insurance Contracts, etc.
This form is used to report distributions from various types of retirement plans. Gross distributions from box 1 could include rollovers, transfers, conversions, total distributions or periodic or non-periodic payments. Box 7 should include a code identifying the type of distribution you received.
If applicable, this amount should be reported on the line for “IRA distributions” or “Pensions and annuities” on Form 1040 or 1040A. The taxable amount reported in box 2a would then be reported on the corresponding line next to the above amounts on your tax return. If you received a lump sum distribution, you may have to file Form 4972. If box 2a is empty and the first box in 2b is checked, the payer was unable to determine the taxable amount. You can refer to the applicable Internal Revenue Service publication, depending on the type of retirement plan you have and the distribution you received. You will generally have to report a capital gain shown in box 3 on either Schedule D or Schedule 4972.
The amount shown in box 5 generally represents a recovery of your investment in the plan or contract. The net unrealized appreciation in box 6 is generally not taxable until you sell the securities. Box 8 will show the value of an annuity contract that you received as part of a distribution and if the distribution was made to more than one person, your percentage will be shown. This information will be needed to complete Form 4972 if you use the 10-year option. Box 9a shows your percentage of a distribution made to more than one person, and if you have a life annuity or a tax-sheltered annuity, you may need the amount in box 9b to determine the taxable portion of the distribution.
1099-S – Proceeds from Real Estate Transactions
If you received this statement for the sale of your main home, you may be able to exclude the gain and not have to report the transaction on your tax return. If the real estate transaction was for business property, you may have to file Form 4797. If it was an installment sale, use Form 6252. Or you may need to report the transaction on Schedule D. You may be able to claim an itemized deduction on Schedule A for the buyer’s part of the real estate tax reported in box 5.
1099-SA – Distributions from an HSA, Archer MSA, or Medicare + Choice MSA
Distributions should be reported on Form 8853 for Archer MSAs or Long-Term Care Insurance Contracts, or Form 8889 for Health Savings Accounts. These distributions may not be taxable if you used them to pay qualified medical expenses. The earnings on excess contributions are included in box 1. These earnings are includible in your taxable income even if you used the distribution to pay qualified medical expenses.