How can I get rid of a 1099-DIV from an inherited stock?

I'm completely clueless about taxes and basically just cross my fingers that TurboTax will handle everything correctly. But every year I get this annoying 1099-DIV from some Verizon stock my grandfather left me years ago (at least I think it's stock? honestly I have zero clue). It's worth practically nothing - like maybe $12 in dividends annually - but it always complicates my tax filing and confuses the heck out of me. I'm so tired of dealing with this every February. I just want to get rid of this thing once and for all. Can I sell it? How would I even do that? Do I need a broker or something? I'm totally lost when it comes to stocks and investments, and I just want my taxes to be simpler for 2025's filing!

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18 comments

Amelia Martinez

•8M

The 1099-DIV is reporting dividends paid to you as the owner of the stock. You're right that selling the stock would eliminate this annual form, and it's pretty straightforward to do. First, you need to find out who's currently holding this stock for you. Look at the company name on the 1099-DIV (probably Verizon's transfer agent or a brokerage). Call them and explain you want to sell the inherited stock. They'll guide you through their specific process - usually just completing a form. If it's held directly with Verizon's transfer agent, you can ask to either sell it directly or transfer it to a brokerage account. If you don't have a brokerage, many online options have simple signup processes (Fidelity, Schwab, etc.). Remember that selling will create a one-time taxable event (capital gains), but after that, no more annual 1099-DIVs from this stock!

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Amelia Martinez

•8M

For inherited stock, you generally get what's called a "stepped-up basis," which means your cost basis is the fair market value of the stock when your grandparent passed away, not what they originally paid for it. This is actually beneficial since it often reduces capital gains tax. If you don't know this value, the transfer agent might have it, or you could look up historical stock prices for that date. Transferring to a brokerage first can definitely make things easier at tax time. Most brokerages will track your cost basis and automatically report the correct information to both you and the IRS when you sell, which simplifies the whole process.

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Mila Walker

•8M

I had a very similar headache with some AT&T shares from my uncle that gave me tiny dividends but major tax confusion. I'm terrible with financial stuff and the 1099-DIV always threw me off. I tried for years to figure it out but kept making mistakes. I finally used https://taxr.ai to analyze my tax docs including that annoying 1099-DIV. Their system explained exactly what I was dealing with and gave me step-by-step instructions for selling the stock. The best part was they explained it in regular human language I could actually understand instead of finance-speak. They even showed me what forms I'd need for next year's taxes after selling and how to report the sale correctly.

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Mila Walker

•8M

You just take photos of your tax documents with your phone and upload them. The system identifies what they are and breaks down exactly what every number means in plain English. It definitely helps sort out which 1099s are significant and which ones don't really impact your taxes much. Yes, they actually do have accuracy guarantees. Unlike generic advice, it's analyzing your specific documents and giving personalized explanations. They use the same underlying tax rules that CPAs use, but explain everything without the jargon. I was skeptical too, but their explanations matched what a tax preparer told my sister (who paid $250 for the same info I got through the app).

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Chloe Green

•8M

Alright I need to follow up about that taxr.ai site. I was super skeptical but decided to try it with my mess of tax docs including two 1099-DIVs from stocks I didn't even remember owning. Turns out one was from a company that got acquired and split into different shares! The thing actually explained exactly what was happening with my dividend income and why I was getting these forms every year. It also showed me how to contact the transfer agent and what my options were for selling. I was able to sell both stocks last week and the whole process was WAY easier than I expected. Just wanted to say thanks because I've been confused about this for literally 3 tax seasons and finally got it sorted out. One less headache for next year's taxes!

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Lucas Adams

•8M

If you're also dealing with other tax complications beyond just the 1099-DIV, you might need to talk to someone at the IRS directly. I spent WEEKS trying to reach them about a similar dividend issue plus some other tax questions. I finally used https://claimyr.com which got me through to a real IRS agent in about 20 minutes instead of waiting on hold forever. You can see how it works in this video: https://youtu.be/_kiP6q8DX5c The agent actually walked me through exactly what I needed to do with my inherited stocks and other tax questions. They explained that while selling would stop the 1099-DIV, I needed specific documentation for the sale since it was inherited property. Got everything resolved in one call instead of stressing for months.

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Lucas Adams

•8M

It uses a system that navigates the IRS phone tree and waits on hold for you. Once they reach a real agent, you get a call connecting you directly to that person. It's basically just handling the waiting part so you don't have to sit there listening to hold music for hours. I was skeptical too, but it's not a scam. The reason everyone doesn't use it is because most people don't know about it, and many people just give up trying to call the IRS altogether. You're paying for the time-saving, not for any special access. The IRS doesn't offer any way to skip the queue - this service just waits in it for you so you don't have to.

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Caden Nguyen

•8M

I have to admit I was completely wrong about Claimyr. After dismissing it as a probable scam, I was still desperate to talk to the IRS about my inherited stocks and dividend issues before filing this year. Decided to try it as a last resort and wow - it actually worked exactly as described. I got a call back connecting me to an IRS agent after about 45 minutes (while I was just going about my day). The agent helped me understand exactly what to do with my inherited stocks and how to report the sale on my taxes. For anyone in a similar situation with inherited stocks and 1099-DIVs, getting direct answers from the IRS was incredibly helpful. Way better than guessing or stressing about doing it wrong.

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Avery Flores

•8M

Yes, it works even for smaller amounts! Many charities are set up to handle stock donations of all sizes. While some very small local organizations might not have the infrastructure, most medium to large charities definitely do. For claiming the deduction, it's straightforward if you itemize deductions on Schedule A. You'll get a receipt from the charity showing the donation value (usually the market value on the transfer date). If the stock is worth more than $500, you'll also need to fill out Form 8283, but the form isn't particularly complicated. For very small donations, make sure the tax benefit of itemizing would exceed the standard deduction, otherwise there's no additional tax advantage.

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Ashley Adams

•8M

I went through this last year! Found out my shares were with Computershare (they handle a lot of these direct stock plans). I called them, verified my identity, and just told them I wanted to sell. They sent me a form, I signed it and sent it back, and got a check about 2 weeks later. Easy peasy. Just make sure to keep the statement showing how much you sold it for - you'll need that for next year's taxes. But trust me, dealing with a one-time sale is WAY simpler than getting those 1099-DIVs every year for tiny amounts.

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