What form is commonly used to report non-wage income such as interest or dividends?

The correct choice is Form 1099-DIV, which is specifically designed to report dividends and distributions received by a taxpayer from investments during the tax year. This form provides detailed information about the types of dividends received, which can include ordinary dividends, qualified dividends, and capital gain distributions.

Using Form 1099-DIV ensures that recipients have the necessary information to accurately report their non-wage income on their tax returns. It helps the IRS track dividend income to ensure compliance with tax regulations. This form is distinct from other options, as it is tailored specifically for dividend reporting, unlike Form 1099-MISC, which was traditionally used for miscellaneous income but has been revised for specific uses.

Forms W-2 and 1040 serve entirely different purposes; W-2 is used to report wages, salaries, and tips from employment, while 1040 is the main tax return form that individuals use to report their overall income and calculate their tax liability. Understanding the specific forms associated with different types of income is crucial for accurate tax reporting and compliance.