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.
What is a closing disclosure? When you buy a house, you will receive a closing disclosure that can benefit you at tax time. Learn more at H&R Block.
Does your job pay cash without withholding taxes? Learn how to pay income tax with cash wages at H&R Block.
Learn more about the definition of cash in lieu on your 1099-B and get tax answers at H&R Block.
Need a basic guide to investing? Learn investing tips and guidelines geared for millennials at H&R Block.