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I don't have 1099 INT. But I have a 1099 DIV. What's the difference?

 
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4 Replies
TKB2
New Member

I don't have 1099 INT. But I have a 1099 DIV. What's the difference?

A 1099 INT is received from an institution that paid you interest on your money for example in a savings account.

 

A 1099 DIV is received from an investment vehicle (stock, mutual fund) that pays you a dividend on thse investments.

hillelw
Returning Member

I don't have 1099 INT. But I have a 1099 DIV. What's the difference?

Sapling.com seems to put this succinctly: "Interest is the income received from bonds, bank CDs, saving accounts, bank money market accounts or loans made as a lender. Dividends are paid to shareholders of stock as a portion of the company profits and all investment company distributions are classified as dividends. Mutual funds, closed-end funds and Exchange-traded funds are the different investment options with dividends."  https://www.sapling.com/6330162/dividends-vs-interest  

 

If you don't have interest in excess of $10 from any one payor, you won't get a 1099-INT. (Many people haven't been getting them recently because interest rates have been so low. This is likely to change, depending on how much people have in interest-bearing accounts). 

 

You have gotten a 1099-DIV, so be sure to enter the details from that in TT. 

 

You can ignore any references to form(s) 1099-INT if you have not in fact received one.

LindaS5247
Expert Alumni

I don't have 1099 INT. But I have a 1099 DIV. What's the difference?

1099-DIV, which reports dividend income and capital gains distributions. 1099-INT, which reports interest income. 1099-R, which reports distributions from retirement accounts.


Dividends are income payments made by companies to shareholders. 

 

Interest is income paid by companies, banks or governments to their bond holders or customers.


 

 

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I don't have 1099 INT. But I have a 1099 DIV. What's the difference?

from a tax perspective, both types of income are reported on schedule B just in different sections. it's important to use the correct section which is done by using the correct 1099 in Turbotax. interest income and non-qualified dividend income are taxed as ordinary income which means there is no special tax rate for them. qualified dividends on the other hand have a special tax rate depending on the taxpayers other income. 

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