Do i have to file 1099 div and 1099 b if I didn't take any money out

[retiree · Accepted solution]

The short answer is YES --the IRS will also get copies of those documents and will be looking for them to be entered into your tax return,

A 1099 DIV specifically means that the account PAID money to you. If it was re-invested or direct deposited to another account you still did receive material financial benefit of the funds --even if you didn't actually receive cash.

A 1099 B reports the sale of a security.  You would have to look at the specific form to determine how much money was involved.  Again, as noted above, if it was re-invested or direct deposited to another account you still did receive material financial benefit of the funds --even if you didn't actually receive cash.

[lovelyx0x0]

Would that be double paying tax.  For instance: Suppose the proceeds minus costs are reported on your taxes and you pay taxes on the gain (ex: 10k), but you don't actually take your gain ourt and it gets re-invested.  Years later, you decide you want that gain (10k), wouldn't you be paying taxes on it when you take it out.  You will get a 1099 distribution.

That would be double paying tax

[Cynthiad66]

No.  You have to report the documents and TurboTax will translate it to whether it is taxable or not.  If you re-invest your gain, then that would be counted as the cost of the new purchase.  That will reduce your gain by the amount you re-invested.

[fanfare]

@lovelyx0x0 

" You will get a 1099 distribution."

That is only for a tax-deferred account.

For a tax-deferred account, you will not get a 1099-B.

In a regular investment account, withdrawals are not reported to the IRS.

There no concept of  distribution.