Confused About Distribution From Brokerage Account
I have stock in a brokerage account and say it pays a 5k dividend that stays in the account as cash, not reinvested. At the end of the year I know I will get a 1099 DIV and it will count as 5k income on my taxes . But if I withdraw the 5k from the account a few months later will it be counted as another 5 k of income basically raising my tax income 10k in total? Just wondering if it’s better to have my dividends set to pay out vs reinvested.