1099-DIV - is it taxable / reportable?

dilloncs · ‎May 31, 2019

How do I know if this 'income' on my 1099-DIV reported is taxable? I do not take any dividends/distributions from my investments. So, do I need to include it on my taxes?

jerry2000 · ‎May 31, 2019

Yes, you do. If you have your dividends and/or capital gains reinvested, that is definitely reportable, taxable income. The fact that you did not get it in had is irrelevant. It was credited to your account, and then, by your instruction, used to buy additional shares. That makes it reportable and taxable.
Be sure to keep track of the amount and the number of additional shares bought so that you can add that to your cost basis. That way you will not have to pay tax on that amount again when you eventually sell.

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jerry2000 · ‎May 31, 2019

Yes, you do. If you have your dividends and/or capital gains reinvested, that is definitely reportable, taxable income. The fact that you did not get it in had is irrelevant. It was credited to your account, and then, by your instruction, used to buy additional shares. That makes it reportable and taxable.
Be sure to keep track of the amount and the number of additional shares bought so that you can add that to your cost basis. That way you will not have to pay tax on that amount again when you eventually sell.