Intuit Academy Tax Practice Exam

Disable ads (and more) with a membership for a one time $2.99 payment

Enhance your tax preparation skills with the Intuit Academy Tax Exam. Study with comprehensive quizzes and detailed explanations. Prepare for success today!

Each practice test/flash card set has 50 randomly selected questions from a bank of over 500. You'll get a new set of questions each time!

Practice this question and more.

What is the primary purpose of Form 1099-DIV?

To report wages earned
To report dividends received
To report self-employment income
To report partnership income

The correct answer is: To report dividends received

Form 1099-DIV is specifically designed to report dividends earned by an individual or entity during the tax year. When an individual receives dividends from investments in stocks, mutual funds, or other financial instruments, the payor is required to issue this form to detail the amount of dividends distributed. The information reported on Form 1099-DIV includes not only the total dividends paid but also other types of distributions such as capital gains distributions and non-taxable distributions, ensuring taxpayers have a comprehensive account of dividends for accurate tax reporting. This form plays a crucial role for taxpayers in correctly calculating their taxable income, as dividends are considered income that can affect overall tax liabilities.