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Level 1
January 21, 2026
Solved

Does reinvested dividend consider taxable?

  • January 21, 2026
  • 2 replies
  • 1 view
I have dividend of 20.62 that are reinvested, do i have to claim as
Best answer by rjs

Expert Reviewed

Yes, you have to report the dividend as income on your tax return. You should receive a Form 1099-DIV for it. You were free to do whatever you wanted with the money. The fact that you chose to use it to buy more shares does not change the fact that it is income that you received.

 

2 replies

rjs
Level 15
rjsLevel 15Answer
Level 15
January 21, 2026

Expert Reviewed

Yes, you have to report the dividend as income on your tax return. You should receive a Form 1099-DIV for it. You were free to do whatever you wanted with the money. The fact that you chose to use it to buy more shares does not change the fact that it is income that you received.

 

Level 15
January 21, 2026

Yes, dividends are taxable, reinvested or not. So you have to report reinvested dividends as income.

 

The reinvested dividends will increase your cost basis of the shares.

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