Do I report a 1099-INT and a 1099-DIV that I received from my bank on my tax return?

by Sean J. Brennan, CPA | Feb 27, 2018

I have a couple investment accounts at my bank. I receive a 1099-INT and a 1099-DIV on each account. Do I report these on my taxes? Neither one is a Roth, so won't I pay tax as I withdraw funds?

Yes, you report these 1099 forms as taxable income. As stated, these accounts are not Roth accounts or other retirement accounts, hence the form 1099s.
The 1099-INT and 1099-DIV are income reporting documents, sent by banks and third-parties, which the IRS also receives. The IRS then matches your tax return against these third-party documents. If your return and the amounts reported on these documents do not match, you will receive an IRS notice.

You should be able to determine that you actually received the interest and dividends in your investment account to verify the accuracy of these statements. Provided they are correct, you will enter the amounts reported on these forms on Schedule B.

For more resources, check out PICPA’s Money & Life Tips, Ask a CPA, or CPA Locator.

Answered by: Sean J. Brennan, CPA, is president of Brennan and Company CPA PC in Philadelphia.

The responses are based on the limited information provided by the questioner and apply the laws and regulations at the time of posting. Other options could arise as rules and regulations may change over time, including but not limited to the passage of the Tax Cuts and Jobs Act of 2017. They are intended to provide general information, not specific accounting or tax advice; they are not intended or written to be used and cannot be used for the purpose of avoiding or evading taxes or penalties under the IRS code or regulations. Views expressed do not imply an opinion of the PICPA, its officers, directors, employees, or members.
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