Yes. Dividend reinvestment plans let you use dividends to buy more shares of stock in a corporation instead of receiving the dividends in cash. If you are a member of this type of plan and use dividends to buy more stock at a price equal to its fair market value, you must report the dividend as income on IRS Schedule B.
Interested in more Dividends Questions?
- How are liquidating dividends reported and taxed?
- How do I report dividends I received from my credit union ?
- What year is the Mutual fund dividend I received in December and paid in January taxable ?
- Is the amount listed on Form 1099-DIV box 5 for fund expenses deductible ?
- Is the amount listed on Form 1099-DIV box 6 , foreign taxes deductible ?