Dividends Cash

Question: I have stock but never take cash dividends. Do I have to claim that on my Fed Return?

Answer: Whether you take dividends in cash or reinvest them, you have to pay taxon them. Unless they are in a tax sheltered account such as an IRA. You will get a 1099-DIV for taxable dividends with the amount to report on taxes.

Wall Street Horizon Dividend Report: Feb 12, 2010