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April 18, 2022
Question

Why did my tax liability increase when entering 1099-DIV info? Never received any money back from this investment. Gains are always re-invested.

  • April 18, 2022
  • 1 reply
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1 reply

Carl11_2
Employee
April 18, 2022

Just because your gains were reinvested, does not always make them non-taxable. In many cases, what you do with the gains just doesn't matter. A gain is a gain, and it's taxable in the year it's realized or paid.