U.S. · Tax forms
1099-DIV box 5, section 199A dividends.
A slice of box 1a for the REIT-dividend deduction, and the holding period it depends on.
Box 5 of Form 1099-DIV shows qualified REIT dividends paid by a REIT, or section 199A dividends paid by a regulated investment company (RIC). The instructions say the amount is already included in box 1a, so it is a label on part of the ordinary dividends, not extra income.
Check the boxes fit
Result
What the instruction says
Enter the qualified REIT dividends paid by a REIT or section 199A dividends paid by a RIC to the recipient. This amount is included in the amount reported in box 1a. Include REIT dividends (other than capital gain dividends and qualified dividends) for which it is impractical for the REIT to determine whether the recipient met the holding period in Regulations section 1.199A-3(c)(2)(ii).
What a qualified REIT dividend is
Under the instructions, a qualified REIT dividend is generally a REIT dividend received during the year that is not a capital gain dividend or a qualified dividend. It does not include a dividend on REIT stock held 45 days or less during the 91-day period beginning 45 days before the ex-dividend date.
Counting the days
The instructions say to include the day of disposal but not the day of acquisition, and not certain days when the recipient’s risk of loss was diminished.
Funds that hold REITs
A RIC that receives qualified REIT dividends may generally pay section 199A dividends for the year, which certain shareholders meeting holding period requirements may treat as qualified REIT dividends. The amount is limited to the qualified REIT dividends in the RIC’s taxable income, reduced by properly allocable deductions.
Worked example (made-up figures)
A REIT pays $2,000 of dividends in the year. Box 1a shows $2,000 and box 5 shows $1,700 because $300 of the payment was a capital gain dividend, which is outside the box 5 definition. The $1,700 is not added to box 1a.
Related decoders
More 1099 interest and dividend box pages: 1099-DIV box 2a, 1099-DIV box 1a, 1099-DIV box 2b, 1099-INT box 3, 1099-INT box 11. For the 1099-R box 7 codes see the 1099-R distribution codes lookup.
Sources
- Instructions for Form 1099-DIV (01/2024): the box-by-box section for this form. Read November 2, 2026. The IRS page was last reviewed April 30, 2026.
Edition read: Instructions for Form 1099-DIV (01/2024). These instructions are continuous use and are updated as needed, so check the current version before relying on a detail. This page summarizes the instructions and does not replace them; the worked example uses made-up figures.
Frequently asked questions
What is box 5 on Form 1099-DIV?
Qualified REIT dividends from a REIT, or section 199A dividends from a RIC.
Is box 5 included in box 1a?
Yes. The instructions say it is included in the amount in box 1a.
What holding period applies?
A REIT dividend on stock held 45 days or less during the 91-day period beginning 45 days before the ex-dividend date is not a qualified REIT dividend.
Are capital gain dividends in box 5?
No. A qualified REIT dividend generally excludes capital gain dividends and qualified dividends.
Where does the deduction itself get computed?
Not on the 1099-DIV. The instructions only describe the section 199A deduction; it is computed on your return.
Not tax advice
This page summarizes IRS instructions, mostly written for the people who prepare the form, and is not tax, legal or financial advice. The payer, a CPA or an enrolled agent can confirm what a box means for your return. Everything runs in your browser; nothing you enter is sent anywhere.