Intuit Academy Tax Practice Exam 2025 – 400 Free Practice Questions to Pass the Exam

Form 1099-DIV is specifically designed to report dividends earned by an individual or entity during the tax year. When an individual receives dividends from investments in stocks, mutual funds, or other financial instruments, the payor is required to issue this form to detail the amount of dividends distributed. The information reported on Form 1099-DIV includes not only the total dividends paid but also other types of distributions such as capital gains distributions and non-taxable distributions, ensuring taxpayers have a comprehensive account of dividends for accurate tax reporting. This form plays a crucial role for taxpayers in correctly calculating their taxable income, as dividends are considered income that can affect overall tax liabilities.