How tax preparers request a 1099-DIV from clients
By Arthur Teboul, DokuTrak · Published
In short
Ask each investing client for the 1099-DIV from every taxable brokerage or fund account, usually inside the broker’s consolidated 1099. Ask for the full PDF, every page, not only the summary. Expect brokers to release consolidated forms around mid-February, and ask the client to forward any corrected version that follows.
Why tax preparers need a 1099-DIV
Box 1a ordinary dividends go on Form 1040, but only box 1b qualified dividends get the lower capital gains rates, so the split changes the tax. Box 2a capital gain distributions go to Schedule D or straight to the 1040. Box 7 foreign tax paid, typical of international funds, can be claimed as a credit, either directly or through Form 1116 depending on the amounts.
What exactly to ask for
The complete consolidated 1099 for the tax year from each taxable account. Dividends inside an IRA or 401(k) are not reported, so those accounts need nothing here. Ask for every page, including the supplemental pages with foreign-source income and the state breakdown of exempt-interest dividends, which matter for the state return.
What to check when it arrives
- Box 1b qualified dividends is not larger than box 1a, and both agree with the consolidated summary.
- Box 7 foreign tax paid and the matching foreign-source income are captured for the credit.
- The file is the latest version: a corrected consolidated 1099 replaces the first one entirely.
Email to send your client
Replace the bracketed parts. The same text fits in the message of a DokuTrak request (up to 1,000 characters).
Subject: Your brokerage 1099s for dividends
Hi [Client name],
For your investment income I need the full 1099 from each brokerage or fund company where you hold a regular, taxable account. Most brokers combine dividends, interest and sales in one consolidated 1099: please send the whole PDF, every page, not only the summary.
You do not need to send anything for IRA or 401(k) accounts unless you took money out.
Brokers often post these around mid-February and sometimes issue a corrected copy weeks later. If a second version shows up, please forward it too. Could you send the first ones by [date]?
Thank you, [Your name]
Ask once. DokuTrak does the chasing.
- Your client uploads from one link, with no account and no password.
- Reminders go out on a schedule, by default 2, 5, 10 and 14 days after the request, until the file arrives.
- With AI review switched on in your workspace (it is off by default), each upload gets a first pass that flags a file that is not a 1099-DIV or an unreadable or blurry scan. It says so when it is not sure.
- You accept every file or mark it for re-upload, and your client gets the note by email. The AI never accepts a file.