I have invested in stocks...

Actually got around $8-12 in dividends. Some stocks are on profit while some are at loss..


How should I go about it... Do you pay taxes on dividents? What about stocks in loss?

Do I get any thing from my stock broker to show it to IRS?

1. Yes, you pay taxes on dividends. Depending on your tax bracket and whether the dividends are "qualified," the tax rate may be less than the rate for ordinary income. Most regular dividends from US corporations are "qualified."

2, Taxes on capital gains and/or losses are figured once you sell the stock. As long as you hold the stock there is no tax on "paper gains" or deductions for "paper losses."

3. Your broker will send you a 1099-DIV forms to document your dividend income, and a 1099-B form to document any sales. You should receive this in the mail in the next week or so, but if you go on line and log into your brokerage account you may find that it is already available.

You may want to read through the IRS guide on investment income: http://www.irs.gov/publications/p550/index.html - see the sections regarding dividend income