When you open a mutual-fund account, you can receive dividends as cash or have them reinvested. You can also do this with stocks in either of these:
- Dividend-reinvestment program
- Employee stock-purchase plan
Most people reinvest their dividends, which buys more shares. However, when you buy shares through reinvestment, it’s like you received the cash and immediately bought more shares. You must keep track of the basis of each share when you buy them — whether directly or through reinvestment.
Learn more about taxes on bonuses that you may receive at your job, including holiday bonuses, signing bonuses and cash bonuses, with the help of H&R Block.
The minimum income amount depends on your filing status and age. In 2017 for example, the minimum for single filing status if under age 65 is $10,400. If your income is below that threshold, you generally do not need to file a federal tax return. Review our full list for other filing statuses and ages.
Learn more about capital loss carryovers and get tax answers at H&R Block.
If your business had no income this year should you still file a tax return? Learn more from the tax experts at H&R Block.