Lux Investing
how are individual dividend reinvestment plans taxed and when are the taxes paid?
I will be investing in a DRIP through the individual companies in which i purchase the shares or partial shares of stock.i understand that the dividends are taxable,but don't know how or when they will be taxed-rates/yearly/etc..will it be worth the investment or will the taxes eat up the gain?
Public Comments
- dividends are taxed in the year earned unless you are doing the drip in a tax deferred account. how much you keep net of taxes depends on your situation, but in general qualifying dividends are taxed currently at a 15% tax rate.
