• State 1099-DIV filing requires taxes recorded for dividends and distributions.tax time image by Tom Oliveira from Fotolia.com
  
  The Internal Revenue Service (IRS) requires individuals and companies file state 1099-DIV forms in the filing of taxes concerning dividends and qualified dividends. Dividends are a portion of a company's distribution earnings given toward a class of shareholders. The company's Board of Directors decides on the portion of earnings from stock.
  
  

Requirements

• A filer of a 1099-DIV form must report to the IRS on paid dividends and other stock distributions of $10 or more. This includes capital gains dividends. Other times when the filer must complete the IRS form concerns a paid foreign tax on dividends or withholding, withholding on dividends for any federal income tax under rules for backup withholding, and if there was a payment of $600 or more due in part of a liquidation.
  
  

Dividends

• A requirement to filers of state 1099-DIV filings include dividends from money market funds, mutual funds' short-term net capital gains and other stock distributions. Other dividends required on a 1099-DIV filing involve reinvested dividends, S corporation dividends from accumulated earning distributions and Section 404(k) dividends paid from a corporation. Filers do not have to complete the 1099-DIV form for tax dividend distributions concerning life insurance contracts, regulated investment companies with exempt-interest dividends and employee stock ownership plans, according to the Internal Revenue Service.
  
  

Qualified Dividends

• Filers must complete state 1099-DIV for qualified dividends, which are dividends paid from qualified domestic and foreign corporations. These qualified dividends are taxed at a 15 percent maximum rate for individuals, trusts and estates. Exemptions to filing a 1099-DIV form involve dividends not treated as qualified income dividends paid to regulated investment and real estate companies, paid deductible dividends on employer securities, and recipient's obligated payments made with respect to short sales of related property.