3504046
turbotax icon
cancel
Showing results for 
Search instead for 
Did you mean: 
Announcements
Close icon
Do you have a TurboTax Online account?

We'll help you get started or pick up where you left off.

Do I declare the 550.92 amount shown in a1 and a4 on a 1099 DIV when this qualified dividend is automatically roll in toward the purchase of more stock?

 
x
Do you have an Intuit account?

Do you have an Intuit account?

You'll need to sign in or create an account to connect with an expert.

1 Reply
SusanY1
Expert Alumni

Do I declare the 550.92 amount shown in a1 and a4 on a 1099 DIV when this qualified dividend is automatically roll in toward the purchase of more stock?

Yes, even when dividends are reinvested you will include them in your current year income.  This amount will also increase your "basis" in the stock (or other investment) which will lower your capital gains when you sell the investment. 

Unless the dividends are in a tax-deferred account such as an IRA, they will always be taxed in the year in which they are credited to your account.  

Qualified dividends are taxed at the same rate as long term capital gains - so depending on your overall income there may or may not be any actual tax due on the reported dividend income. 

You can learn more about how dividends are taxed HERE.

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"

Unlock tailored help options in your account.

message box icon

Get more help

Ask questions and learn more about your taxes and finances.

Post your Question