Author Topic: Confused about dividends  (Read 419 times)

Lan Mandragoran

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Confused about dividends
« on: February 07, 2019, 01:31:22 PM »
Hello,

I did some googling and I'm not sure I follow exactly.  I for some reason was under the impression that if I was re-investing my dividends automatically I didn't have to report anything (as long as I wasn't withdrawing anything basically). Is this not correct?

I have 401k, tradIRA's, rothIRA, and taxable.

Any help would be appreciated =].

markbike528CBX

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Re: Confused about dividends
« Reply #1 on: February 07, 2019, 06:25:25 PM »
Taxable account dividends are taxable income and are reported to the IRS and to you (1099-DIV).  You have to put them on Schedule 8249? and Schedule D.
Reinvested or not, withdrawn or not, taxable account dividends still ARE taxable at various applicable rates.(0% to 28%).

Non Taxable account (401k Roth 427 403  TraditionalIRA etc) dividends are not taxable until withdrawal.

secondcor521

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Re: Confused about dividends
« Reply #2 on: February 07, 2019, 06:46:41 PM »
Taxable account dividends are taxable income and are reported to the IRS and to you (1099-DIV).  You have to put them on Schedule 8249? and Schedule D.
Reinvested or not, withdrawn or not, taxable account dividends still ARE taxable at various applicable rates.(0% to 28%).

Non Taxable account (401k Roth 427 403  TraditionalIRA etc) dividends are not taxable until withdrawal.

It's Form 8949, but the rest is correct as far as I know.

MDM

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Re: Confused about dividends
« Reply #3 on: February 08, 2019, 05:36:08 PM »
Dividends are listed on Schedule B, with the total going to form 1040 line 3b.

The amount of qualified dividends goes directly on form 1040 line 3a.  This is a subset of the amount on line 3b.

Ordinary (aka non-qualified) dividends (the difference between 3b and 3a) are taxed at ordinary income rates.

Qualified dividends are taxed the same as Long Term Capital Gains (LTCG): 0%, 15%, or 20%.  See the Qualified Dividends and Capital Gain Tax Worksheet.

markbike528CBX

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Re: Confused about dividends
« Reply #4 on: February 08, 2019, 05:43:04 PM »
Dividends are listed on Schedule B, with the total going to form 1040 line 3b.

The amount of qualified dividends goes directly on form 1040 line 3a.  This is a subset of the amount on line 3b.

Ordinary (aka non-qualified) dividends (the difference between 3b and 3a) are taxed at ordinary income rates.

Qualified dividends are taxed the same as Long Term Capital Gains (LTCG): 0%, 15%, or 20%.  See the Qualified Dividends and Capital Gain Tax Worksheet.

MDM is correct, I was thinking capital gains,   Oooooops, Sorry.

The 1099-DIV reporting is still OK, as are the issues of reinvested or not.