I have dividend income but all of my dividends are reinvested. Doesn't that make them unrealized gains and not subject to tax until I withdraw them?

posted

No, it doesn't. Dividends are taxed in the year you receive them, what you do with them is immaterial. However, when you reinvest them, this increases your cost basis of the stock when you sell it. .

Auto-suggest helps you quickly narrow down your search results by suggesting possible matches as you type.

Expert does your taxes

Do it yourself

Resources

Support

I have dividend income but all of my dividends are reinvested. Doesn't that make them unrealized gains and not subject to tax until I withdraw them?

I have dividend income but all of my dividends are reinvested. Doesn't that make them unrealized gains and not subject to tax until I withdraw them?

Get more help

Ready to start your taxes?

Do you have a TurboTax Online account?

I have dividend income but all of my dividends are reinvested. Doesn't that make them unrealized gains and not subject to tax until I withdraw them?

I have dividend income but all of my dividends are reinvested. Doesn't that make them unrealized gains and not subject to tax until I withdraw them?

Get more help

Ready to start your taxes?

Thank you for helping us improve the TurboTax Community!

Sign in to Turbotax

File your taxes, your way

Access additional help, including our tax experts

Post your question

Connect with an expert