How do I report this 1099-DIV from my mutual fund?

Enter the ordinary dividends from Form 1099-DIV (PDF), box 1a, on line 9a of Form 1040, U.S. Individual Income Tax Return. Enter any qualified dividends from Form 1099-DIV, box 1b, on line 9b of Form 1040. If you have an amount entered in other boxes of your 1099-DIV refer to Form 1040, Schedule D Instructions to see where to report them. If your only capital gains and losses are from capital gain distributions, refer to Form 1040 Instructions.

References:

• Form 1040, Schedule D (PDF), Capital Gains and Losses
• Form 1040 Instructions
• Form 1040, Schedule D Instructions

Do I have to pay tax on reinvested dividends?

Dividend reinvestment plans let you choose to use your dividends to buy (through an agent) more shares of stock in the corporation instead of receiving the dividends in cash. If you are a member of this type of plan and use your dividends to buy more stock at a price equal to its fair market value, you must report the dividends as income.

If you are a member of a dividend reinvestment plan that lets you buy more stock at a price less than its fair market value, you must report as income the fair market value of the additional stock on the dividend payment date.

Other rules may apply. For additional information, refer to Chapter 8 of Publication 17, Your Federal Income Tax, and Tax Topic 404, Dividends.

References:

• Publication 17, Your Federal Income Tax
• Publication 564, Mutual Fund Distributions
• Tax Topic 404, Dividends

I received dividends from my credit union. How do I report this income?

Certain distributions commonly referred to as dividends are actually interest. They include "dividends" on deposits or share accounts in cooperative banks, credit unions, domestic savings and loan associations, and mutual savings banks.

Interest income can be reported on Form 1040, Form 1040A, or Form 1040EZ (PDF). If your taxable interest income is more than $1,500, be sure to show that income on Form 1040, Schedule B (PDF) or Form 1040A, Schedule 1 (PDF). You cannot file Form 1040EZ if your interest income is more than $1,500. Refer to Tax Topic 403, Interest Received, for additional information on interest income.

References:

• Form 1040, U.S. Individual Income Tax Return
• Form 1040A, U.S. Individual Income Tax Return
• Form 1040EZ (PDF), U.S. Individual Income Tax Return for Single and Joint Filers with No Dependents
• Tax Topic 403, Interest Received