Capital Gains and Losses
Questions and comments about tax rules for buying and selling stocks, mutual funds, real estate and other assets.
tax on reinvesting qualified dividends
Posted by: Melody, March 22, 2017 11:44PM
I have dividends in 2 places.

1. Receiving them on quarterly basis into my checking account with Chase Bank who is holding the stock in a Chase brokerage acct. I filed them for the first time this year on my tax return and the 1099DIV form said they were qualified dividends.

2. Receiving them I believe on a quarterly basis also in my brokerage accounts. The stocks I have invested in, are e.g, Apple, Intel, ATT, who pay quarterly dividends. These accounts are Roth IRA accounts. The brokerage rep told me the dividends are swept into a cash acct and available for me to purchase additional stocks so my account just shows me how much cash I have available to invest. I have not received a 1099DIV for the dividends I received in over the 5 plus years from these Roth Accounts. Have not filed them on my taxes. Have not withdrawn or taken a distribution from them, just buy and/or sell stocks or make roth contributions in one and roth conversions in the other.

So I came across this article yesterday about tax on reinvesting dividends and wonder if it applied to me. Can someone clarify this for me. Let me know if you need more info or something. In no.1 above, just using the dividends so far as supplemental income. In no. 2 above, the cash is available for me to buy more stock of my choice on the market, haven't done much with it past few years but thinking of buying more stocks. Thank you.

Melody.

Re: tax on reinvesting qualified dividends
Posted by: kaneohe, March 23, 2017 01:08PM
Dividends in IRAs are not taxable to you currently so you do not get a 1099-DIV.

Dividends in taxable accounts (non-IRA) are taxable to you currently whether you reinvest them or not.

Re: tax on reinvesting qualified dividends
Posted by: Melody, March 23, 2017 05:06PM
Thank you Kaneohe for taking the time to answer. Nothing to worry about then. Life should be so simple.

Best regards, Melody



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