If I reinvest my dividends , are they still taxable?

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Are qualified dividends included in gross income?

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Posted by Guest (Questions: 36, Answers: 1)
Asked on 2017-02-17 1:18 am
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If you chose to reinvest your dividends , the process of using automatically cash dividends to purchase additional stock of the company, you still have to pay taxes as though you actually receive cash. Stock dividends are generally not taxable, until the stock is sold. Qualified dividends are included in taxpayer’s adjusted gross income .But qualified dividends are taxed at lower rate than Ordinary dividends. Ordinary dividends are paid out of corporation mutual fund earnings & Qualified dividends are subject to the maximum tax rate that applies to the investor’s capital gains.
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Posted by Guest (Questions: 0, Answers: 27)
Answered on 2017-02-19 10:45 am
Many large companies offer Dividend Reinvest Plan (DRIP). They allow investors to reinvest their dividends by purchasing additional shares on the dividend payment date. There are so many advantage and disadvantages of reinvestment. If stock or mutual fund you are reinvesting dividend in has been rising in value, it helps your investment grow. If the stock falls ,you lose more money. Stock dividends are not taxable.
(Guest at 2017-02-22 10:55 am)
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