Bank Investment Account Dividend and Capital Gains

[BarryS]

Much to my surprise I received a 1099-DIV statement from my bank that reports:

A. Total Ordinary Dividends

B. Qualified Dividends

C. Total Capital Gain Distributions

I have leaned that these come from by new bank investment account where I moved some money in the past year or so. I have not touched this account at all. But apparently behind the scene the administrator is moving money around by selling and buying shares, sort of like a mutual fund. But again it is worth noting the account goes untouched by me.

Must I report these dividends and gains even though I did not touch any of the account money? I was under the impression I would only need to report gains when I actually withdrew the money?

[AamilD · Accepted solution]

Yes, you need to report gains even if you did not withdraw the money. Income is reported when dividends are received or when stocks/shares are sold, regardless of whether that money was withdrawn or not.

To report this in TurboTax, please follow the steps below:

1. Click on Tax Home from the Left Menu.
2. Click on Income & Expenses from the main screen.
3. Scroll Down till you see the Section " Investments and Savings". Within this section you will be able to report your Dividend Income under 1099-Div and Capital Gains under 1099-B.