Tax question. I freely admit that I am utterly clueless about this and I will be seeking help from a professional shortly. But in the meantime, what do you do?
Seth William Banks: Use a decent online broker and TurboTax. At tax time, upload your info to TurboTax. Boom, done.Entering the info from my investments is easier than my W2. I’ve done it with RD Ameritrade and Charles Schwab.
Donaldus Maximus: I’m using my E-Trade brokerage account right now.
John De Clerck: If it in a retirement account you don’t until you retire and take it out. If you have it in a tax account than when you sell you have capital gains. If you don’t sell than you pay tax on the dividend income.
Tom Tinkle: Trade in an IRA and you don’t have to do anything..
Michael Morse: Lol…nobody answered your question.
Tom Tinkle: The questions was answered, you just can’t read Michael Morse
Michael Morse: Lol….you can’t read. Still waiting for someone to say when do you pay the taxes. Do it in an ira is not an answer of when.
Tom Tinkle: No one is stopping you Michael Morse from answering the question now is there genius.
Tom Tinkle: I can’t believe that someone who lives in this county doesn’t know when to pay taxes.
Justin Garcia: If it’s a Roth account, never
Michael Morse: Money that goes into a roth has already been taxed.
Michael Morse: Unless your working for a cash undervthe table job is the only way you’ll avoid paying taxes in a roth.
Tom Tinkle: Justin Garcia you already paid the taxes on the income.. the Govt is going to get its taxes, sometimes before, sometimes after and very often ever year…
Justin Garcia: Yes but this is a dividend group so we taking about payouts tom
Tom Tinkle: yes, payout = income which = taxes….
Pedro Lopez: you always pay taxes on dividends that are not in a retirement acct. I try not to let taxes scare me from saving. Good Luck investing.
Pedro Lopez: You will Get a 1099 tax form.. Must turn it in.
Darren Yoelin: Taxes are due 4/17. You can get an extension to file until October 15th. You’ll still need to pay by April.
Pedro Lopez: I recommend to take a tax course I took one a few years back but I do need a refresher very interesting how things work within investing
Darren Yoelin: There are so many factors at play here, you’ll want to talk to a professional. Do you have a job that takes withholdings from your wages? are you self employed? Have you ever filed a tax return before?
Pedro Lopez: Helpful tip known as ” Tax Harvesting” where you may sell loosing stocks to take a deduction/write off…. But Before you do that I would contribute to TAX Deffered accts, like 401k.
Dan Weston: Your brokerage will issue you (and the IRS) a Consolidated 1099 Form. The Dividends are reported in the 1099-DIV section. Follow the instructions on the form to enter the amounts on your 1040.
Michael Mieling: You pay taxes on the dividends each year, but since you reinvested them to buy more stock, they add to the basis of you total shares in that company. So if you do this for several years you need to track your original cost and the amounts you added thru the drip each year to know what your total basis is. Keep good records. When you sell the shares you pay tax on the sales price less your cost basis
Karen Becker: Michael Mieling is the older days, you had to keep track and it was a lot of record keeping but now its required of the brokerage firm to keep track and report that as long as you bought after the year that law/rule was put into place. right?.
Michael Mieling: To me drip is a PITA. Would rather accumulate the dividends and add shares periodically
Tom Tinkle: When you do that Michael you loss the most powerful investment tool and thats the power of compounding…You also pay a commission to buy more shares and you can’t add fractional shares. If you are a long term holder what your doing is a mistake…. Now you can be smarter about it by only reinvesting your dividend when prices are low and taking your dividend when prices are high… Never underestimate the power of compounding over time. Of course if you need the dividends for income that would be a different story…
Michael Mieling: Valid point Tom. My feeling is so long as I am reinvesting the dividends I still get the power of compounding. Avoiding commissions with a DRIP is, however, a savings and a reason to use the DRIP. My particular approach in my IRA account is to inves…See more
Emil Grinage Jr.: Are the dividends taxed at ordinary income rate or is it more complicated than that?
Tom Tinkle: Ordinary Dividends are taxed at your personal tax rate as income..
Beverly Cosgrove: Emil Grinage Jr. – it’s more complicated than that. Dividends are either “ordinary” or “qualified”. The qualified ones are taxed at a lower rate… but they have to meet certain criteria. Furthermore, if the business is a foreign one (even if its a …See more
Tom Tinkle: https://www.efile.com/ordinary-qualified-dividends-tax…/
How Much is Taxed on Dividend Income and How to Report It? Ordinary Dividends,…