The short answer
Form 1099-DIV reports dividends and fund distributions; Form 1099-INT reports interest. Boxes 1a and 1 are only the start: other boxes change how an amount is taxed, where it goes on your return, or whether it is taxed at all. This guide covers each box on the current forms (Rev. January 2024, used for 2025 and 2026). For the basics — whether to report small amounts and when Schedule B is required — see Do I have to report bank interest and dividends?
Form 1099-DIV, box by box
| Box | What it shows | What you generally do |
|---|---|---|
| 1a — Total ordinary dividends | Taxable ordinary dividends | Form 1040, line 3b; also Schedule B if required |
| 1b — Qualified dividends | Part of box 1a that may get the 0%, 15%, or 20% rates | Form 1040, line 3a, if you meet the holding period |
| 2a — Total capital gain distributions | Capital gain distributions from a fund or REIT | Long-term capital gain: Schedule D line 13, or Form 1040 line 7a if Schedule D is not required |
| 2b — Unrecaptured section 1250 gain | Part of box 2a from depreciable real property | Unrecaptured Section 1250 Gain Worksheet (25% maximum rate) |
| 2c — Section 1202 gain | Part of box 2a from small business stock | See the Schedule D instructions for the exclusion |
| 2d — Collectibles (28%) gain | Part of box 2a from collectibles | 28% Rate Gain Worksheet, line 4 |
| 2e and 2f — Section 897 amounts | Gain from U.S. real property interests | Apply only to foreign persons and entities |
| 3 — Nondividend distributions | Return of capital | Not taxed; reduces basis. Any excess over basis is capital gain |
| 4 — Federal income tax withheld | Backup withholding | Claim as tax withheld on your return |
| 5 — Section 199A dividends | Part of box 1a | May qualify for the qualified business income deduction (Form 8995 or 8995-A) |
| 6 — Investment expenses | Your share of a nonpublicly offered fund's expenses | Included in box 1a |
| 7 — Foreign tax paid; 8 — country | Foreign tax on the dividends | May be claimed as a credit or a deduction |
| 9 and 10 — Liquidation distributions | Cash and noncash liquidation distributions | At least in part a return of capital; see Publication 550 |
| 12 — Exempt-interest dividends | Tax-exempt dividends from a fund | Form 1040, line 2a (not taxed) |
| 13 — Specified private activity bond interest dividends | Part of box 12 | May be an AMT item; see the Form 6251 instructions |
Notes on the dividend boxes
- Qualified dividends: for common stock you generally must have held the shares more than 60 days during the 121-day period that begins 60 days before the ex-dividend date. For preferred stock with dividends due to periods totaling more than 366 days, the test is more than 90 days during the 181-day period that begins 90 days before the ex-dividend date. Some dividends are never qualified, even if they appear in box 1b.
- Capital gain distributions without Schedule D: under the Form 1040 instructions, you can report box 2a directly on line 7a and skip Form 8949 and Schedule D if you have no capital losses, your only capital gains are capital gain distributions, and none of your Forms 1099-DIV show amounts in boxes 2b, 2c, or 2d.
- Return of capital: if you bought shares in different lots and cannot identify which shares a nondividend distribution relates to, reduce the basis of the earliest purchases first.
Form 1099-INT, box by box
| Box | What it shows | What you generally do |
|---|---|---|
| 1 — Interest income | Taxable interest (not including box 3) | Form 1040, line 2b; also Schedule B if required |
| 2 — Early withdrawal penalty | Interest or principal forfeited on an early withdrawal | Report all of box 1, then deduct this on Schedule 1, line 18 |
| 3 — U.S. savings bonds and Treasury obligations | Interest on savings bonds and Treasury bills, notes, and bonds | Federally taxable (savings bond interest may not all be taxable); exempt from state and local income tax |
| 4 — Federal income tax withheld | Backup withholding | Claim as tax withheld on your return |
| 5 — Investment expenses | Share of a single-class REMIC's expenses | Included in box 1; not deductible |
| 6 — Foreign tax paid; 7 — country | Foreign tax on the interest | May be claimed as a credit or a deduction |
| 8 — Tax-exempt interest | Tax-exempt interest, such as municipal bonds | Form 1040, line 2a (not taxed) |
| 9 — Specified private activity bond interest | Part of box 8 | Generally reported on Form 6251, line 2g |
| 10 — Market discount | Accrued market discount if you made the election | See Publication 550 |
| 11 — Bond premium | Premium amortization on a taxable bond | Reduces taxable interest if you amortize |
| 12 — Bond premium on Treasury obligations | Premium amortization on Treasury securities | Reduces box 3 interest if you amortize |
| 13 — Bond premium on tax-exempt bond | Premium amortization on a tax-exempt bond | Report only the net tax-exempt interest on line 2a |
| 14 — CUSIP number; 15–17 — state | Identification and state withholding | For your records and state return |
Savings bonds, OID, and bond premium
- Savings bonds: if you use the cash method, as most individuals do, you generally report savings bond interest when you receive it, although Publication 550 describes other reporting options. If you cashed Series EE or I bonds issued after 1989 and paid qualified higher education expenses, you may be able to exclude some interest on Form 8815 (Schedule B, line 3).
- Original issue discount (OID): OID is a form of interest that you generally include in income as it accrues, even if you receive no payment, and it is reported on Form 1099-OID. A small "de minimis" discount can be treated as zero. If you report less OID than the form shows, follow the Schedule B instructions and label the difference "OID Adjustment."
- Bond premium: for a taxable bond you can choose to amortize the premium, which reduces your taxable interest and your basis. For a tax-exempt bond you must amortize it, but the amortization is not deductible. If the form shows gross interest and premium separately, subtract it on Schedule B as an "ABP Adjustment." If the payer already reported net interest, no further reduction is allowed.
Example (illustrative, 2025)
Kai is single. Kai's fund sends a Form 1099-DIV, and a bank and Treasury account send Forms 1099-INT:
| Form and box | Amount | Where it goes |
|---|---|---|
| 1099-DIV box 1a | $2,400 | Form 1040 line 3b and Schedule B (over $1,500) |
| 1099-DIV box 1b | $1,800 | Form 1040 line 3a (holding period met) |
| 1099-DIV box 2a | $600 | Long-term capital gain (line 7a if Schedule D is not required) |
| 1099-DIV box 3 | $300 | Not taxed; reduces basis in the fund shares |
| 1099-DIV box 5 | $200 | Part of the $2,400; may qualify for the QBI deduction |
| 1099-DIV box 7 | $45 | Foreign tax credit on Schedule 3 without Form 1116, if all conditions are met |
| 1099-DIV box 12 | $500 | Form 1040 line 2a (tax-exempt) |
| 1099-INT box 1 and box 3 | $1,200 and $900 | Taxable interest of $2,100 on line 2b and Schedule B; the $900 is exempt from state tax |
| 1099-INT box 2 | $80 | Deduct on Schedule 1, line 18 |
Common mistakes
- Adding box 1b to box 1a — qualified dividends are already part of box 1a.
- Treating box 3 of Form 1099-DIV as income instead of a basis reduction.
- Forgetting box 3 of Form 1099-INT, because it is not included in box 1.
- Netting the early withdrawal penalty against interest instead of deducting it on Schedule 1.
- Claiming a QBI deduction on all dividends rather than only the box 5 amount that qualifies.
⚠️ Check your form version
Box numbers here follow the January 2024 revisions of Forms 1099-DIV and 1099-INT. Line numbers follow the 2025 Form 1040 and may differ in later years. Liquidation distributions, market discount, section 897 amounts for foreign persons, and state tax are not covered in detail.