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tran7823
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Why do i pay taxes for1099 dividend when i'm not withdraw

 
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Why do i pay taxes for1099 dividend when i'm not withdraw

Did you reinvest the Dividends?  A reinvested dividend is taxable.  It is really 2 transactions,  you got a Dividend then you bought more shares.  Just like if they sent you a check and then you bought more shares. So be sure to add it to your cost basis when you sell the shares.

 

Unless it is in some kind of retirement account like a 401K or IRA.  Then you should not get a 1099Div for it and it is not reported or taxable.

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