Interest from bank accounts, CDs and credit union share accounts is reported on Form 1099-INT; dividends, money market fund payouts and capital gain distributions on Form 1099-DIV. Reinvested dividends are still income and must be reported, and all interest counts even if no form arrives: forms are generally sent for $10 or more.
Are reinvested dividends taxable?
Yes. In a regular (taxable) account you must still report dividends that were reinvested, and the reinvested amount adds to the cost basis of the shares it bought (IRS Publication 550). Inside a traditional IRA, earnings are generally not taxed until you take money out (IRS: Traditional IRAs).
Do I have to report interest under $10?
Yes. Banks generally send Form 1099-INT for $10 or more, but you must report all taxable interest, even if no form arrives (IRS Topic 403). Dividends work the same way: Form 1099-DIV is generally sent for distributions of $10 or more (IRS Topic 404).
Which payments go on 1099-INT and which on 1099-DIV?
| Payment | Usually reported as |
|---|---|
| Bank savings, checking, money market account and CD interest | Interest, Form 1099-INT |
| Credit union “dividends” on share accounts | Interest, Form 1099-INT (IRS Publication 550) |
| Treasury bill interest | Interest, generally when the bill matures; exempt from state and local income tax (TreasuryDirect) |
| I bond and EE bond interest | Interest, usually reported when you cash the bond; exempt from state and local tax (TreasuryDirect) |
| Stock and fund dividends, including reinvested ones | Dividends, Form 1099-DIV; some are “qualified” and taxed at lower rates (IRS Topic 404) |
| Money market fund payouts | Generally dividends, not interest (IRS Publication 550) |
| Capital gain distributions from funds | Form 1099-DIV |
How do I keep a record that matches my forms?
Write down each payment once, on the day it arrives, and mark whether it was paid as cash or reinvested. At tax time, add up each account and compare it with its form.
Illustrative example
| Date | Account | Kind | Amount | How it was paid |
|---|---|---|---|---|
| Mar 15 | Brokerage account | Dividend | $112.50 | Paid as cash |
| Mar 26 | Brokerage account | Dividend | $99.00 | Reinvested |
| Mar 31 | Online savings | Interest | $84.11 | Paid as cash |
| Mar 31 | Credit union savings | Interest | $5.73 | Paid as cash |
Each payment is counted once. A reinvested dividend is income, but it is not also “new money you added”.
Is dividend income the same as my return?
No. Dividend yield is the yearly dividend divided by the share price, and total return is the dividend plus the rise or fall in price (FINRA). An account can pay steady dividends in a year when its value falls. On the ex-dividend date, a share’s price may fall by about the amount of a significant dividend (Investor.gov).
To see the split for one account, use year-end statements: end value − start value − money added + money taken out gives the overall result; subtract the income received to see how much came from price changes.
This page summarizes IRS publications for general information. It is not tax advice; your tax forms and your tax preparer are the authority.
Common questions
Do I pay tax on dividends that were reinvested?
In a regular taxable account, yes: the IRS says reinvested dividends must still be reported as income, and they add to the cost basis of the shares bought.
Do I have to report interest under $10?
Yes. Payers generally send Form 1099-INT only when they paid you $10 or more, but the IRS says all taxable interest must be reported, including smaller amounts with no form.
What’s the difference between Form 1099-INT and Form 1099-DIV?
Form 1099-INT reports interest: from savings, CDs, money market deposit accounts, credit union share accounts and Treasury securities. Form 1099-DIV reports dividends and fund distributions: from stocks, mutual funds and money market funds. Payers generally send each one for $10 or more.
Sources
Each source was checked on October 8, 2026. Rules and limits can change; when it matters, check the source.
- IRS: Topic no. 403, Interest received, updated October 7, 2026
- IRS: Topic no. 404, Dividends, updated September 24, 2026
- IRS: Publication 550, Investment Income and Expenses, updated April 30, 2026
- IRS: Traditional IRAs, updated September 10, 2026
- U.S. Treasury / TreasuryDirect: I bonds
- U.S. Treasury / TreasuryDirect: Treasury Bills
- FINRA: Defining the value of an investment, updated November 12, 2025
- SEC / Investor.gov: Ex-Dividend Dates: When Are You Entitled to Stock and Cash Dividends
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