What form provides information on dividends received?

The correct form that provides information on dividends received is Form 1099-DIV. This form is specifically designed to report dividends and distributions to shareholders. When individuals receive dividends from stocks, mutual funds, or other investments, the financial institution or corporation issuing the dividends will provide Form 1099-DIV to both the taxpayer and the IRS. The form includes details such as the total dividends received, qualified dividends, and capital gain distributions.

Understanding the reporting of dividends is important for accurate income tax preparation because these amounts can affect the taxpayer's taxable income and may also influence eligibility for certain tax benefits. For example, qualified dividends are taxed at a lower rate than ordinary income, and reporting this information correctly can impact the overall tax liability.

Other forms listed serve different purposes. Form 1040 is the primary tax return form used by individuals to report their income, deductions, and credits. Form W-2 is issued by employers to report wages, tips, and other compensation, while Form 1099-INT is used to report interest income earned from investments or bank accounts. Each of these forms addresses specific types of income, but for dividends specifically, Form 1099-DIV is the relevant document.