Do you report long term capital gains when dividends are reinvested

[bassett72]

SO I have many AMERICAN FUNDS accounts and I am just investing...I haven't pulled anything out.  Do I report Dividends and LONG term capital gains on my taxes?

[AmyT]

Yes, dividends and long-term capital gains that are reported to you on Form 1099-DIV are considered to be taxable income, even if you do not receive the funds (they are reinvested on your behalf).

Since these are taxable transactions, they will increase your basis in the stocks/funds they are paid on, which will result in lower taxes when you eventually sell them.

[bassett72]

Is it possible then that I didn't receive a 1099-DIV because the amount wasn't enough to report?  When I look up my tax forms on American Funds it says I don't have one.

[AmyT]

Yes, it's possible.  They are not required to issue a 1099-DIV if the amount is less than $10.

[bassett72]

My amounts were from $34 to $300...???

[AmyT]

You should probably contact American Funds to find out what is going on with this account.  There may be another reason that they have not reported anything on the 1099-DIV.