1099-DIV box guide
1099-DIV Box 13: Private activity bond interest dividends
Identify the exempt-interest dividend amount that can affect alternative minimum tax.
Return destination
Where the amount goes
Form 6251 alternative minimum tax analysis
1099-DIV
Return to the complete form guide and reconciliation worksheet.
Checks before filing
- Do not add Box 13 to Box 12 again.
- Retain the fund statement supporting the classification.
- Review AMT when this box contains an amount.
How Box 13 works
Box 13 identifies the portion of a fund's exempt-interest dividends (already included in Box 12) that comes from specified private activity bonds — generally bonds meeting the section 141 definition and issued after August 7, 1986. The instructions describe the amount as attributable to interest the fund received on those bonds, minus the fund's allocable share of related expenses.
Because Box 13 is a subset of Box 12 rather than an addition to it, a fund reporting an amount here should also show at least that much in Box 12; if the two don't line up in your records, it's worth checking the fund's supplemental statement rather than assuming a payer error. Private activity bonds fund specific projects — certain housing, infrastructure, or facility financing — rather than general government operations, which is part of why the tax code treats their interest differently for AMT purposes than ordinary municipal bond interest.
The main consequence of a populated Box 13 is on the alternative minimum tax side: private activity bond interest is a preference item that can increase AMT income even though it's excluded from regular federal taxable income. Not every municipal bond fund holds private activity bonds, so a blank or zero Box 13 alongside a populated Box 12 simply means the fund's tax-exempt holdings for the year didn't include that bond category.
Worked example
A taxpayer's municipal bond fund reports Box 12 of $900 in exempt-interest dividends, with $80 of that identified in Box 13 as attributable to specified private activity bonds. The $900 is reported as tax-exempt interest and excluded from regular taxable income, but the $80 private activity bond portion is run through the Form 6251 alternative minimum tax calculation as a preference item.
Related 1099-DIV boxes
Box 1a: Total ordinary dividends
Report total ordinary dividends without adding qualified dividends from Box 1b twice.
Box 1b: Qualified dividends
Identify the part of ordinary dividends potentially eligible for qualified-dividend tax rates.
Box 2a: Total capital gain distributions
Carry long-term capital gain distributions to Schedule D or direct reporting when permitted.
Boxes 2b-2f: Special capital gain categories
Separate section 1250, section 1202, collectibles, and section 897 gain categories.
Frequently asked questions
What does Box 13 mean on 1099-DIV?
Box 13 identifies the portion of exempt-interest dividends attributable to specified private activity bonds. It is included in Box 12 and may be relevant to AMT.
Do I add Box 13 on top of Box 12, or is it already counted?
It's already counted. Box 13 identifies a portion of the Box 12 total that comes from specified private activity bonds — it isn't a separate or additional amount.
Why does a private activity bond amount matter if the interest is already tax-exempt?
Private activity bond interest is excluded from regular federal taxable income but is treated as a preference item for the alternative minimum tax, so it can still increase AMT income even though it does not affect the regular tax calculation.
What is a private activity bond, in plain terms?
It is generally a bond, as defined under section 141 and issued after August 7, 1986, used to finance certain private-purpose projects such as specific housing or facility financing rather than general government operations.