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mjsmith
March 19, 2020
Question

Reinvestested Div

  • March 19, 2020
  • 1 reply
  • 0 views

I thought if you set up a DRIP in your stock account you did not get taxed each year on the dividends received? 

    1 reply

    VolvoGirl
    VolvoGirl
    Employee
    March 19, 2020

    Nope.  Dividends are always taxable.  Unless it is in a tax deferred account like a IRA  or 401K .  A reinvested dividend is really 2 transactions,  a dividend then a buy.  Doesn't matter how or what do did with the dividend.  You still got it.

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