Reinvested dividends are taxable, exactly as received dividends.
You can enter your form 1099-DIV by following these steps:
- In TurboTax, open your tax return
- Click on Federal in the left-hand column, then on Wages & Income on top of the screen
- Scroll down to All Income, locate the section Interest and Dividends and click on Show more
- Click Start next to Dividends on 1099-DIV.
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