Do you pay year end taxes on dividends received for holdings in a brokerage account, even if those dividends are reinvested? Is it inescapable that we have to pay taxes on such dividends? Or would the only way to basically hold those positions in a tax deferred/advantaged account (IRA, 401k, etc)?

like
Posting as :
works at
You are currently posting as works at

Yes.

But re-invest is the way to go.

like

Yes, as I learned when I didn’t report them at first because I thought they were only taxed when I cashed out. Oops.

Don’t be me.

like

Uber 1: My CPA spouse set me straight the first year we filed together. Fortunately, nearly all my investments were in retirement accounts at the time with only a pittance in normal investments, so my total dividends over a few years was only a few hundred dollars. She made the calculated risk to just ignore it and deal with it if the tax man ever came knocking. So far, so good!

D1: You’re being charitable. It’s not “misfortune,” it’s stupidity. Maybe arrogance that I didn’t even need to check? But I’ve definitely learned my lesson.

Don’t be me from a decade ago. Be me now - take your advice from a CPA!

helpful

Yes you have to pay taxes on dividends from your taxable brokerage, even if you reinvest them. If you want to lower the amount that’s taxed, you could tax loss harvest some other investments. But no you can’t escape tax obligations on the dividends.

like

Yes. It doesn’t matter if you reinvest or not

Yes you will pay taxes on those dividends, they get reported to the IRS and will be broken out for you in your annual 1099 (typically provided by your brokerage in the mail & online by February at the latest)

Related Posts

I have been considering going back to school but I left active duty 15 years ago and my Post 9/11 expired this summer.

Either way, I'm curious if anyone would know why I only received 25 months of education benefits. I was 100% active for 4 years, 3 deployments to Iraq, honorable discharge etc. And wondering if there is any way to extend my benefits and get the 36-48 months that seems to be standard.

like

I make $140k in New York. Should I invest a Traditional 401K or a Roth 401K or do a split?

like

What would you do?

(Or really this is just me typing out loud. )

Currently 6 years at job A at 100K and 10K annual bonus but lil to no upward mobility. It's safe if not going anywhere.

Recruiter reached out regarding Job B at 130K with greater advancement potential but it starts out at 6 Months Contract to Hire per the agency contract. No bonus, benefits adequate by comparison. There is no guarantee to go full time.

Interview just for practice?

likehelpful

Is it possible to work 1-2 years as a junior associate at a super boutique doing a combination of fraud/abuse and transactional work in the healthcare space and then lateral to biglaw to practice securities law? I’m happy doing health law, but it’s not what I want to do long term and I worry the longer I stay in that space, the harder it will be switch to the kind of law I truly want to build a career in.

like

So I’m thinking of taking a pharmacy tech course at my local community college. I already work in healthcare on the admin side (authorizations, front desk etc) & looking to get a certification that’s quick & don’t have to go back to school. How is it being a tech in the hospital setting? What other paths are there for techs? How much can you make? Or are there any other short certifications that would make more money?

like

Hi All, I am exploring a contract position and they are offering the below. As I am new to contracting, Please suggest which one is better Option 1: $70/hr on W2
Option 2: $80/hr on 1099
I live in the Bay Area, CA if it matters.

Thank you so much !

like

I love teaching art but am having to teach remotely to 1150 kids, k - 5. Have about 54 amazing elementary art teachers in my district that share SO much! I could retire (34 yrs), but just don’t want to because I love what I do! Feeling like my students aren’t getting what they should because I am struggling with Zoom, Microsoft, safe YouTube, bitmoji, embedding, downloads, editing, etc. Anyone else feeling this way?

like

I keep getting contract offers on LinkedIn (think self-employed consultant). The rates seem really good ($120-$150/hr). I have around 5 years exp and a CISSP. I’m highly considering leaving big4 to become a contractor/self-employed consultant. From a risk perspective I’m young and have no kids and low debt.
Anyone did it? Any feedback?

like

I’ve been hired by a health benefits startup with only consulting experience. Any recommendations for books, blogs, or online course material to get myself as oriented as possible before starting in 2 weeks?

like

Hi fishes,

Does anyone know about HR Path company. Is it a good company to join as a SuccessFactors Integration Lead ?
How about the work culture, work life balance, compensation and benefits?

Please help out a poor fish trying to move for a better life. @HRPath

like

Hello all! Is anyone working contracts/per
diem under an LLC? I'm interested in
getting started along with my full time
job

likesmart
like

Hi Fishes, I have recently joined Ericsson. What are yearly hikes and benefits I can expect? Please share your valuable feedback. Thanks in advance.@Ericsson

likesmart

Hi Fishes

I wanted to know the Employee Perks/ benefits provided by
Freshworks Inc to employees.

I am currently working in a Company where in they pay ₹ 5,000/- a month for wellness reimbursement, free Cab, food Annual Education reimbursement upto ₹3,50,000/- etc

All employees are eligible to these benefits and these are beyond the CTC.

Does Freshworks Inc provide any of the above or any other benefits besides CTC ?

Any firms charge no-shows / have a provision in their fee agreements about reserving the right to do so? I get that we aren’t healthcare, but I work from home more and more now. So when I drag my ass to the office because a client wanted an in person meeting, and 38 min later, they aren’t here, it’s frustrating

like

Hi Fishes, Does Pwc AC Bangalore give Mobile phone reimbursement of 34k like in Kolkata AC? Is there WFH one time allowance given now for new joiners post august 2022?

like

Hello! I’m starting to look for remote Recruiter position and would love to get into the Tech industry. I’ve worked in a fast-paced, full-cycle Recruiter role in Healthcare for the past year and more of an administrative role the year before that. I have my Bachelors degree in Marketing and frequently pick up design projects for our campaigns.

I’d love to chat with anyone regarding this industry change and hear of any leads you may know of! Thank you in advance!!

like

I am new to Deloitte. My background is in agile transformation and product management within provider settings. I have found tech projects, but none within healthcare. Any advice for finding these?

likehelpful

More Posts

Morning! Any recommendations of a good OB? Thanks

like

I applied for my DREAM job almost 2 weeks ago, but I haven’t received a response to my application. Should I send a follow up email? I want to stand out and be noticed by the company without coming off as desperate.

like

Hi there, I’m moving from Europe to Melbourne in a couple of weeks. Any recommendations for good phone contracts and home internet provider? I will do home office so I’ll need a decent internet connection at home.

like

GSAP email out - we are hearing next week.

funnylike

What would be a fair TC for a L4 DevOps Consultant at Amazon Canada (Montreal) How much to ask for bonuses and RSUs?

Hey y’all! Looking for a junior cw to write spec for a campaign I’m working on. I have the bulk of the strategy and ideas ready to go but need some help with copy and some fresh eyes on it. PM me!

like

Has anybody had any experience with Deloittes M&A integration consulting? The title is specifically Senior Consultant - Integration. What are the hours like. As an auditor, would my skills transfer? Is the work more predictable than M&A FDD? Thanks for any help out there.

like

What does your benefits package include?

like

What are the pay raises/salaries for an auditor as you advance through your career? Like from A1 to A2 and then S1, etc.?

like

It's been almost 10 days since my Guidehouse application status (on my Dashboard) got updated to "Reviewed" but I have not heard from anyone yet. Is there still hope or should I assume that my application got rejected?

likehelpful

laid off in Oct but ended Jan with 4 in-persons and good feedback. fast forward a month - ghosted twice, one put on hold, and one no. ~1 month of unemployment left - f@&k i feel worthless.

like

Welcome to our pre-k inclusive classroom. Even with 8 students, and only face to face for 4 hours, we struggle. We struggle being heard through our masks. We struggle with social distancing. We struggle as we find ourselves constantly reminding students to keep their masks on. We struggle to keep them engaged and to teach. One thing we do not struggle with- building connections and showing out love for each child.

Post Photo
like

Is there any experienced insolvency Admin in this bowl?

like

Hi all,
I graduated during Covid with a double major in business administration and business management with a minor in marketing and magically ended up in sales because I needed a job. I’m about to take a data analytics course to make an attempt to break into that field. I’m currently looking for a mentor to help guide me during this time. Also, if anyone is willing to look over my resume and give me tips on how to make it more presentable for recruiters in DA that would be very helpful. Thanks

like

Hi Sharks,

Why there is no videos about BNP india in YouTube? 😅

like

Rumour has it that DOUG is going down.
Anyone else hear that? Can anyone at DOUG confirm?

like

Am a fresher graduate and Have a good Technical skills on JAVA,SQl. please anyone could u able to refer me.My current location is banglore

like

What’s your practice’s ratio of males to females in advisory?

Female here and interviewing for a handful of accounting advisory roles but I’ve only interviewed with old white males. Is this a male dominated field?

likehelpful

Hi All,

I got offer from Fujitsu for C++ developer i feel that it's a good opportunity to learn new skills along with C++.
I already have 9.1LPA + 35K yearly incentive and i got 12LPA Fixed in Fujitsu.

YOE: 3.6 years

I'm in process of making a decision. Please help.

Is Fujitsu good company for career development nd learn new skills?

I have been told by the HR that they have yearly two appraisal policy in Fujitsu, is this correct?

like

Hi there, any recommendations on a good Vitamin C serum?

like

Additional Posts in Personal Investment Chatter

Would anyone like to share ways they give back or donate? And at what % of net?

like

I’m considering Schwab roboinvestors to manage my investments actress various index funds aligned with my risk profile. Aside from the large 6% cash requirement, what are other downsides?

I make $140k in New York. Should I invest a Traditional 401K or a Roth 401K or do a split?

like

What ETFs, index funds do you all invest in and what u recommend in this recession looking like economy. I'm a beginner investor. Just opened my fidelity brokerage account.

like

Hey all! I would appreciate some feedback on my investing strategy: I want to buy QQQ3X when QQQ goes below 118$. I believe a major market reversal (a crisis) should take place in late 19 or (cont)

Has anyone here bought land and built a home or completely renovated a new one in the city? Outside of timeline, are there other pros/cons you would highlight? What was more cost effective?

like

People investing in rental real estate what’s your ROI this year? My profit divided by current value is barely above 3% (and that’s with no renovations and 100% occupancy). Should probably sell it and invest elsewhere...

like

If you were to attend a 1-2hr free financial seminar, what would you want to learn? I'm thinking of hosting a free financial literacy workshop that will actually make a budget and networth statement.

likeuplifting

When you do a back door roth - do you close the traditional ira or leave it open? My first time doing it and fidelity is asking which I prefer.

like

If a company in which I owned stock was taken private, does that mean I should sell my stock because the price isn’t going to change?

like

Repeat with me, this is a buying and holding opportunity! 👏🏻

like

thoughts on buying airline stock? delta?

like

Worth buying VTI today? Every week I am buying and it’s going lower and lower the next day. I bought it yesterday and today it’s 5$ lesser than yesterday!

like

Is BRK-B a buy right now?

like

Is watch a good investment vehicle in terms of resale value?

like

On personal Capital, how many of you add the value of your car to your net worth

like

Curious for some advice…

I currently have a Cap One Venture card. I have had it for a couple of years now but I am interested in upgrading to a Venture X card.

No promotion has been offered to me to upgrade my existing Venture card to a Venture X card.

Should I wait until that promotion is offered to me? Or would it be dumb to apply for a Venture X card separately and a) hold both cards or b) close out the original Venture card.

like

Just opened up a Roth IRA with Schwab. what’s are good stocks/mutual funds that i should buy for the Roth IRA account?

like

Anyone out there living off of (or able to live off of) their dividends? This is my financial goal but I’d like to know if anyone is doing it. What’s your allocation? I have mostly REITs

like

26 years old. Thinking about doing Grad school in 2 years. I have been doing Roth 401k. Should I keep on doing that or switch to Trad 401k? Info on this is so mixed :(

like

New to Fishbowl?

Download the Fishbowl app to
unlock all discussions on Fishbowl.
That was just a preview…
Sign Up to see all discussions
  • Discover what it’s like to work at companies from real professionals
  • Get candid advice from people in your field in a safe space
  • Chat and network with other professionals in your field
Sign up in seconds to unlock all discussions on Fishbowl.

Already a user?
Login here

Share

Embed this post

Copy and paste embed code on your site

Preview

Download the
Fishbowl app

See what’s happening in your industry
from the palm of your hand.

A phone with Fishbowl app

Send download link to your phone

OR

Scan your QR code to download
Fishbowl app on your mobile

By continuing you agree to Terms of Use and Privacy Policy.

Messaging rates may apply

Download app

Sign up for free to view this conversation on Fishbowl

By continuing you agree to Terms of Use and Privacy Policy

Already have an account? Log in

Sign up for free to continue using Fishbowl

By continuing you agree to Terms of Use(New) and Privacy Policy(New)
Messaging rates may apply

Already have an account? Log in

For account settings, visit Fishbowl on Desktop Browser or

General

Legal