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jek19
New Member

What line on my 1099-div (in TT) do i put my reinvested dividends?

 
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2 Replies
MinhT1
Employee Tax Expert

What line on my 1099-div (in TT) do i put my reinvested dividends?

Reinvested dividends are taxable.

 

You do not enter them when entering your form 1099-DIV.

 

Reinvested dividends are like an additional investment which increases the cost basis.

 

For example, if you reinvested $100 of dividends to buy 5 additional shares of XYZ, then those 5 additional shares have a cost basis of $20 each.

 

Your stockbroker should keep track of this information for you.

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What line on my 1099-div (in TT) do i put my reinvested dividends?

A Reinvested Dividend is really 2 transactions.  A Dividend and then a buy more shares.  Just as if the fund sent you a check for the dividend and then you went and bought more shares.  You don't report the new shares until you sell them.  

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