Internal Revenue Service United States Department of the Treasury
Level Basic Advanced Military International

Income Workout

Dividends and Corporate Distributions

Reporting Capital Gain Distributions

Payers also report capital gain distributions on Form 1099-DIV.

More Information

Capital gain distributions are also called capital gain dividends.

Frequently Asked Questions

Question: Are capital gains and capital gain distributions the same thing?

Answer: No. A capital gain occurs when the owner of a mutual fund (or capital asset) sells shares in the fund (or property) for more than its cost and realizes a profit. A capital gain distribution occurs when the mutual fund sells assets for more than their cost and distributes the realized gain to the shareholders.

If taxpayers actually sold mutual fund shares, or other shares of stock, the return must be prepared by a VITA/TCE tax preparer with advanced certification.

Form 1099-DIV

Form 1099-DIV