2619033
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.

Are dividends that are rolled over from stocks have to be reported?

my stock dividends are automatically reinvested. do I have to report them
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.

2 Replies

Are dividends that are rolled over from stocks have to be reported?

Yes....those $$ are reported as-if you received the $$, and then used them to purchase more.

You normally would-have received a 1099-DIV for those $$, and you just enter it in the software as-is.  But if the total for your account, for everything from that broker was less than $10, they may not issue a 1099-DIV...but you are still responsible for reporting anything of 50cents or greater.

 

It will add to your basis in those shares though, when you eventually sell those shares.

__________________

The only exception I know of, is if those stocks were held within an IRA or 401k, or the like...then those $$ would not be reported, because what happens within those retirement vehicles, stays there until you actually take money out.

 

____________*Answers are correct to the best of my knowledge when posted, but should not be considered to be legal or official tax advice.*
PattiF
Expert Alumni

Are dividends that are rolled over from stocks have to be reported?

Investors ​​​​​​​do have to report dividends as taxable income even if they reinvest them to buy more shares. Companies and brokerage companies will report such dividends on 1099-DIV forms the same way regardless of whether you reinvest in new shares, and the IRS will expect you to include them on your annual tax return. You should receive a 1099-DIV for the stocks that are in the dividend reinvestment program.

 

See the IRS FAQ about this.

**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