Your 1099-DIV is a record of all dividends and distributions earned in your Cambria Investments account during 2015. It includes taxable dividends and distributions as well as exempt-interest dividends paid by municipal bond ETFs. There are multiple boxes on your 1099-DIV, each of which reports a different piece of information which must be included in your tax return:
Box 1a Total Ordinary Dividends: The total amount of dividends and short-term capital gain distributions paid in 2015.
Foreign tax paid (reported separately in Box 6) is added to the dividends and distributions reported in Box 1a as well. If you had foreign tax paid in 2015, the total amount reported in Box 1a will be higher than the amount actually received. For more information on foreign tax, please refer to IRS Publication 514.
Tax-exempt dividends (reported separately in Box 10) are not included in Box 1a. If you received tax-exempt dividends in 2015, the total amount reported in Box 1a will be lower than the amount actually received.
Box 1b Qualified Dividends: The amount of dividends included in Box 1a that are subject to applicable long-term capital gains rates.
Box 2a Total Capital Gain Distributions: The total long-term capital gain distributions paid to you in 2015. These differ from long-term sales reported on your 1099-B, and instead come from the distributions paid by some ETFs.
Box 6 Foreign Tax Paid: The total foreign income taxes paid in 2015 on income from the ETFs’ investments in foreign securities. Federal tax law can permit U.S. taxpayers to take either a deduction or credit for these taxes; for more information please refer to IRS Publication 514 or consult with a tax professional.
Box 10 Exempt-Interest Dividends: The total amount of tax-exempt dividends paid by municipal bond ETFs in 2015.
Please note that Cambria Investments is not a tax advisor and the information provided should not be construed as tax advice, but should be used for informational purposes only. Please consult a qualified tax professional or the IRS to determine the rules that apply to your individual tax situation.