Q. We received dividends on stock and reinvested the dividends, where do I enter the reinvestment?
A. That does not get entered anywhere, on your tax return, or in TurboTax. You enter it on your records to keep track of your cost basis (you broker/mutual fund company is probably doing that for you).
The dividends are taxable. The fact that you used the money to buy more shares (reinvested it), does not get you out of paying tax on that "income". But, most dividends ("qualified dividends") are taxed at the long term capital gains tax rate, which is less than the tax rates on ordinary income.
