Traditional IRA Dividends Reinvested

[Taxman707]

My client's 2019 1099-DIV from his traditional IRA reports ordinary, qualified and capital gains dividends, all of which were reinvested. Does he need to report these? If so, what is the procedure?

Thanks for any help,

TM707

[Just-Lisa-Now-]

Ive never seen a 1099DIV issued for an IRA account (it would be too easy to accidentally include it on a tax return)..are you sure thats what you have there?  You're sure its an IRA account?

[abctax55 · Accepted solution]

I agree with Lisa.... I've never seen one either.

I *have* seen, especially in recent years, K-1's for IRA's.  Which can be very confusing (and no, those don't get reported on the F 1040).

[George4Tacks]

Hi there,

You’ve come to an Intuit site supporting tax professionals, and you may be looking for support as an individual taxpayer. Please visit the TurboTax Help site for support.

Cheers!

P.S. Look more closely at the 1099-DIV. If it has the SSN, it is NOT from an IRA.

[IRonMaN]

I'm going to guess that your client has a couple of accounts with a broker.  One is an IRA and one isn't.  Sounds like you are looking at a 1099 for the "isn't" account and yes, you need to report it.

[Taxman707]

Hi Lisa:

On closer inspection, you are correct. This appears to be an investment account. Would that make all the dividends taxable in the year they are paid, even though they were reinvested?

TM707

[IRonMaN]

Yes

[Taxman707]

Hi IRonMaN:

You called it. Reports for several accounts were mixed together in the clients documents.

Thanks,

TM707

[IRonMaN]

You betcha!

[Just-Lisa-Now-]

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@abctax55 wrote:

I agree with Lisa.... I've never seen one either.

I *have* seen, especially in recent years, K-1's for IRA's.  Which can be very confusing (and no, those don't get reported on the F 1040).

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Ive seen a few of those IRA K-1s too!!