What document must a taxpayer file to report interest and dividends earned?

To report interest and dividends earned, taxpayers must use Form 1099-INT, which is specifically designed for reporting interest income. This form is issued by financial institutions to individuals who earn interest on their deposits, and it shows the total amount of interest earned during the tax year. Taxpayers utilize this form to ensure that they accurately report their interest income on their tax returns.

When it comes to dividends, taxpayers would generally receive a Form 1099-DIV, which reports dividend income, but the question specifically pertains to interest and dividends together. Therefore, the emphasis on interest income makes Form 1099-INT particularly relevant in the context of reporting interest earnings.

The other options play different roles in the tax filing process. Form 1040 is the primary individual income tax return that taxpayers file to report their total income, including interest and dividends, but it does not specifically report each type of income separately. Schedule C is used to report income or loss from a business, and Form W-4 is used by employees to specify the amount of tax to be withheld from their paychecks. None of these forms is specifically tailored for the reporting of interest and dividends like Form 1099-INT is.