Have to Claim dividends on taxes?

2 ⤊

Have to Claim dividends on taxes?

Does one have to claim dividends received from stock on taxes if that person automatically has those dividends reinvested?

2007-12-04 09:10:03 · 3 answers · asked by Entrepreneur 3 in Business & Finance ➔ Taxes ➔ United States

3 answers

Yes, you still pay the tax in the year the dividend was credited, but the amount of the dividend is added to your basis for that stock and is used when you sell it.

2007-12-04 09:40:32 · answer #1 · answered by Judy 7 · 2⤊ 0⤋

You will receive a 1099-DIV form in January showing the ordinary dividends and qualified dividends to be reported on your 1040.

2007-12-04 12:10:28 · answer #2 · answered by r_kav 4 · 0⤊ 0⤋

yes, unless the reinvestment is within a tax-deferred retirement account like a 401(k) or IRA.

2007-12-04 10:23:32 · answer #3 · answered by npk 7 · 0⤊ 0⤋