Unlock Your Investment Tax Savings
Your Form 1099-DIV is more than just an income report—it's a guide to potential tax benefits. This interactive dashboard helps you understand and visualize how different dividends can significantly lower your tax bill.
Qualified Dividend Savings Calculator
See the difference lower tax rates make. Enter your details to compare the tax on qualified dividends versus ordinary dividends. (Note: Uses simplified 2024 tax rates for illustration).
Estimated Tax Savings:
$700
Your 1099-DIV Benefits at a Glance
Each box on the form can tell a different story about your tax situation. Here’s what to look for.
Qualified Dividends
Benefit: Lower Tax Rate
The most common benefit. These dividends are taxed at lower long-term capital gains rates instead of your higher standard income rate. Look for this amount in **Box 1b**.
Capital Gain Distributions
Benefit: Lower Tax Rate
If you own a mutual fund or REIT, these distributions are also taxed at favorable long-term capital gains rates. Find this in **Box 2a**.
Section 199A Dividends
Benefit: Potential 20% Deduction
Applies to REIT dividends and may allow you to deduct 20% of the dividend amount from your taxable income. See **Box 5**.
Exempt-Interest Dividends
Benefit: Tax-Free Income
Income from mutual funds that invest in municipal bonds is generally exempt from federal income tax. Reported in **Box 12**.
Return of Capital
Benefit: Tax-Deferred
This isn't income, but a return of your investment. It's not taxed now; it just lowers your cost basis for when you eventually sell. See **Box 3**.
Foreign Tax Paid
Benefit: Credit or Deduction
Avoid double taxation. You can claim foreign taxes paid on dividends as a credit or deduction on your U.S. return. See **Box 7**.
