Author Topic: New to Brokerage/Taxable Investing--trying to understand taxes  (Read 218 times)

icyappraiser

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New to Brokerage/Taxable Investing--trying to understand taxes
« on: February 05, 2019, 11:04:45 AM »
2018 is the first year I invested in a taxable account (Vanguard). I was doing some reading around but I'm having a little trouble understanding the tax implications. I'm hoping someone here can help explain to a newbie on this.

I invested $17k into a taxable account this year but did not withdraw any of the money or sell any investments. Dividends are set to automatically re-invest.

I have a 1099 from Vanguard showing:

Total Ordinary Dividends: $454.14
Qualified Dividends: $426.94
Interest Income: $0.00

Do I owe any tax due to this?
If yes, on the $454.14 or the $426.94?
Does this affect my ability to use the 1040EZ form? Otherwise I would be able to use this form (taxable income <$100k, filing single, only ordinary wage income, std deduction)

terran

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Re: New to Brokerage/Taxable Investing--trying to understand taxes
« Reply #1 on: February 05, 2019, 11:26:08 AM »
Yes, the dividends are taxable whether they're reinvested or not. Qualified dividends are taxed at long term capital gains rates which range from 0-20% depending on overall income. No qualified dividends ($454.14 - $426.94 = $27.20) are taxed at ordinary income tax rates.

Didn't they eliminate the 1040EZ with the 2018 tax reform?

MNBen

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Re: New to Brokerage/Taxable Investing--trying to understand taxes
« Reply #2 on: February 05, 2019, 11:33:26 AM »
Didn't they eliminate the 1040EZ with the 2018 tax reform?

Yes - it's my understanding as well there is no longer a 1040EZ form.